Government Finance Statistics Manual 2014

Glossary 407

Life insurance Life insurance is an activity whereby a policyholder makes regular payments to an
insurer in return for which the insurer guarantees to provide the policyholder (or
in some cases another nominated person) with an agreed sum, or an annuity, at a
given date or earlier if the policyholder dies beforehand ..................................A4.69

Life insurance and annuities
entitlements

Life insurance and annuities entitlements are fi nancial claims policyholders have

against an enterprise off ering life insurance or providing annuities ................7.187

Listed shares Listed shares are equity securities listed on an exchange and may be referred

to as quoted shares. (Unlisted shares are equity securities not listed on an ex-

change) ......................................................................................................................7.168

Loan A loan is a fi nancial instrument that is created when a creditor lends funds
directly to a debtor and receives a nonnegotiable document as evidence of the
asset ...........................................................................................................................7.157

Loans and other debt instru-
ment guarantees

Loans and other debt instrument guarantees are commitments by one party to

bear the risk of nonpayment by another party ....................................................7.259

Local government units Local government units are institutional units whose fi scal, legislative, and ex-
ecutive authority extends over the smallest geographical areas distinguished for
administrative and political purposes ....................................................................2.95

Machinery and equipment Machinery and equipment cover transport equipment, machinery for informa-

tion, computer, and telecommunications (ICT) equipment, and machinery and

equipment not elsewhere classifi ed .........................................................................7.52

Margins Margins are payments of cash or deposits of collateral that cover actual or poten-

tial obligations incurred ............................................................................... 7.219, 9.75

Market establishment A market establishment is an establishment that charges economically signifi cant

prices ...........................................................................................................................2.75

Market prices Market prices refer to current exchange value—that is, the value at which goods,
services, labor, or assets are exchanged or else could be exchanged for cash (cur-
rency or transferable deposits) ..............................................................................3.107

Market prices for
transactions

Market prices for transactions are defi ned as amounts of money that willing buy-

ers pay to acquire something from willing sellers; the exchanges are made between

independent parties and on the basis of commercial considerations only, some-

times called “at arm’s length” ..................................................................................3.108

Market producer A market producer is an institutional unit that provides all or most of its output to
others at prices that are economically signifi cant .................................................... 2.65

Market regulatory agencies Market regulatory agencies act on behalf of a government (or a regional organi-
zation with governments as its members) and infl uence the market for specifi c
goods or services directly and/or indirectly ........................................................2.156

Marketable operating leases Marketable operating leases are third-party property rights relating to fi xed

assets .........................................................................................................................7.108

Marketing assets Marketing assets consist of items such as brand names, mastheads, trademarks,
logos, and domain names .......................................................................................7.115

Materials and supplies Materials and supplies consist of all goods held with the intention of using them
as inputs to a production process ............................................................................7.79