The credit crisis and bailout of the financial system has introduced some unfamiliar terms to the public. Credit-loss ratio: Compares losses...

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The credit crisis and bailout of the financial system has introduced some unfamiliar terms to the public.

Credit-loss ratio: Compares losses related to delinquencies and foreclosure to the overall scale of a firm’s mortgage business.

Moral hazard: The idea that when investors and executives are protected from punishment for their bad judgments, they will continue such behavior in the future.

Term-auction facility: An instrument used by the Federal Reserve to increase liquidity in the financial markets.

The Washington Post