cliff effect


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cliff effect

A digital transmission of audio or video that ends abruptly (drops off a cliff). Unlike analog transmission, which can gradually become worse and worse (snowy picture, static audio) until there is nothing left, digital circuits require a minimum signal threshold in order to interpret the incoming binary code. If that threshold is not maintained, the electronics cannot decipher the signal, and the process stops instantly.
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An estimate of the value of the cliff effect can be derived from examining the costs incurred by individuals participating in cross-border shopping.
A reference to the narrow gap between customers receiving a quality digital signal, or no signal at all, the cliff effect is a key factor in the need for continuous monitoring of 8VSB transmitters.
A minimum level of liquid assets should be held at banks to ensure their ability to sustain a short term liquidity stress and banks should also structure their funding profile to limit the impact of long term market disruptions and avoid cliff effects.