To be "denominated" is to be expressed or valued in terms of a specific unit of measurement, typically in finance. This often refers to currency, but can also apply to other quantities like weight, length, or even abstract concepts. Something denominated provides a framework for understanding or comparing values. The term emphasizes a defined, standardized way of assigning value or quantity to something, ensuring consistency and facilitating transactions or comparisons. Its a declaration or stipulation of worth in quantifiable terms, providing a common language for exchange or assessment.
Denominated meaning with examples
- The loan agreement was denominated in Euros, requiring all repayments to be made in that currency. This meant the borrower faced exchange rate risk if the value of the Euro fluctuated against their local currency. The bank's accounting system tracked all assets and liabilities denominated in various foreign currencies for risk management and reporting purposes.
- Historically, many contracts were denominated in gold, providing a stable value. Today, most bonds are denominated in specific currencies, and the yields are influenced by the perceived creditworthiness of the issuer and the economic outlook of the currency's issuing country. Companies with international operations often have their revenues and expenses denominated in multiple currencies.
- Real estate valuations can be denominated in square feet or square meters, providing a standard unit for comparison. The price of gold is denominated in troy ounces, offering a consistent measure of value. Similarly, stock prices are usually denominated in the local currency of the exchange on which they're listed. All commodities are denominated by weights and measures, facilitating trade.
- Financial derivatives are often denominated based on the underlying assets, allowing for speculation and hedging. The salaries of employees working at the same company but in different countries might be denominated differently depending on location and cost of living. International trade relies on contracts denominated in mutually agreed-upon currencies or units. Interest rates of all kinds of loans are denominated by yearly rates.
- A fine art piece's appraisal could be denominated by artistic worth and time, providing a measure of its value. Inflation statistics are denominated with changes based on percentages, this means that the rate of inflation is the change of the average prices. Legal fees could be denominated in an hourly rate. Furthermore, a project's budget is typically denominated in a specific currency to track expenses.