The forces of supply and demand, which determine equilibrium quantities and prices in markets. These are contrasted with the government and monetary authorities, which are able to some extent to modify the outcome of unrestricted market processes. In some matters government powers are considerable: for example, the market alone would leave to starve those without property and unable to work; governments are able to prevent this through income support for the unemployed, retired, and disabled. In other matters the authorities have little power: for example, the total turnover of the foreign exchange markets is so large compared to the foreign exchange reserves of most countries that exchange rates can diverge very little from what market forces would dictate.

• loan
• loanable funds
• loan-loss reserve
• loan portfolio
• lobbying
• local authority housing
• local content
• local government
• local maximum
• local minimum
• location
• lock-out
• locomotive principle
• logarithm
• logarithmic scale
• logistic curve
• log-linear function
• log-normal distribution
• log-rolling
• Lomé Convention
• London Inter Bank Offered Rate
• London International Financial Futures and Options Exchange
• long-dated security
• long position
• long rate