Budget surplus: The amount each year by which government income exceeds government spending.

Bull market: A market in which there is a continuous rise in stock prices.

Capital: The physical equipment (buildings, equipment, human skills) used in the production of goods and services. Also used to refer to corporate equity, debt securities, and cash. 113

Capitalism: An economic system in which the means of production are privately owned and controlled and which is characterized by competition and the profit motive.

Capital market: The market in which corporate equity and longer-term debt securities (those maturing in more than one year) are issued and traded.

Central bank: A country's principal monetary authority, responsible for such key functions as issuing currency and regulating the supply of credit in the economy.