Banking Terms- Hard currency -Commodity swap -Love Money - Hobby Loss

Define Hard currency
Hard currency or strong currency, in economics, refers to a globally traded currency that can serve as a reliable and stable store of value

Explain Commodity swap
A swap in which exchanged cash flows are dependent on the price of an underlying commodity. A commodity swap is usually used to hedge against the price of a commodity

Define Love Money
Seed money or capital given by family or friends to an entrepreneur to start a business. The decision to lend money and the terms of the agreement are usually based on qualitative factors and the relationship between the two parties, rather than on a formulaic risk analysis.

Define Hobby Loss
A non-deductible loss incurred as a result of doing an activity for personal pleasure instead of for profit. A taxpayer cannot deduct the hobby loss as a business loss. A "hobby loss rule" is used to determine whether an activity is a hobby or a business.

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