Glossary

0.0 00 What is a ‘Foreign Direct Investment – FDI’ Foreign direct investment (FDI) is an investment made by a company or individual in one country in business interests in another country, in the form of …

0.0 00 What is ‘Interest’? Interest is the charge for the privilege of borrowing money, typically expressed as annual percentage rate. Interest can also refer to the amount of ownership a stockholder has in a company, usually …

0.0 00 What is ‘Escrow’? Escrow is a legal concept in which a financial instrument or an asset is held by a third party on behalf of two other parties that are in the process of …

0.0 00 What is a ‘Hurdle Rate’? A hurdle rate is the minimum rate of return on a project or investment required by a manager or investor. The hurdle rate denotes appropriate compensation for the level …

0.0 00 What are ‘Factors Of Production’? Factors of production is an economic term that describes the inputs that are used in the production of goods or services in order to make an economic profit. The …

0.0 00   What is ‘Inelastic’? Inelastic is an economic term used to describe the situation in which the quantity demanded or supplied of a good or service is unaffected when the price of that good …

0.0 00 What is the ‘Solvency Ratio’? A key metric used to measure an enterprise’s ability to meet its debt and other obligations. The solvency ratio indicates whether a company’s cash flow is sufficient to meet …

0.0 00   What is an ‘Impaired Asset’? An impaired asset is a company’s asset that has a market price less than the value listed on the company’s balance sheet. Accounts that are likely to be …

0.0 00 What are ‘Taxes’? Taxes are generally an involuntary fee levied on individuals or corporations that is enforced by a government entity, whether local, regional or national in order to finance government activities. In economics, taxes fall …

0.0 00 What is a ‘Floating Exchange Rate’? A floating exchange rate is a regime where the currency price is set by the forex market based on supply and demand compared with other currencies. This is …