Monetarily-linked

Monetarily-linked describes a state where two or more entities, systems, or actions are connected or dependent on each other through financial or monetary means. This connection can manifest in various ways, including shared financial interests, contractual obligations, direct transactions, or dependencies on the value of assets. It implies that a change in one element will likely have a corresponding impact, positive or negative, on the other. The link can be explicit, as in a loan agreement, or implicit, as in the economic interdependence of countries trading with each other. The strength of the link varies and dictates the degree of financial risk or benefit that exists between the parties involved.

Monetarily-linked meaning with examples

• The two companies were monetarily-linked through a joint venture agreement, where profits were shared and operational expenses were covered proportionally. A downturn in one's performance directly impacted the other’s bottom line, creating both financial incentives and risks. They relied upon each other to complete the project, so the project's failure was extremely costly to both. This link provided many challenges and required the financial officers of each company to work together.
• The homeowner and the mortgage lender are monetarily-linked through a legally binding contract; payments must be made or assets can be repossessed. Default on the mortgage will lead to foreclosure and loss of the property for the homeowner and a financial loss for the lender. Therefore, both parties have a vested interest in maintaining the agreement's terms and ensuring stable income. This risk and responsibility also allows for opportunities for the lender, but in the instance of default, the burden of cost.
• The economic stability of many countries is often monetarily-linked through international trade agreements, such as those among those within the EU or the Pacific Rim. Changes in exchange rates, interest rates, or market fluctuations in one nation can directly influence the financial prospects of others. This global network creates interdependence, fostering both economic growth and also increasing the potential for worldwide crises. This reality also supports the concept of mutually-assured destruction.
• A retirement plan and an employee are monetarily-linked through contributions and accrued benefits; one invests and the other reaps the benefit. Employer contributions, employee contributions, and the growth of investments determine the value of the plan. Retirement income is usually designed to supply financial security during retirement, and both entities share responsibility for ensuring the plan's success. Thus, both entities have financial risks and incentives, ensuring shared and interdependent fates.