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 …
Read More »Floating Exchange Rate
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 …
Read More »Acid-Test Ratio
0.0 00 What is the ‘Acid-Test Ratio’? The acid-test ratio is a strong indicator of whether a firm has sufficient short-term assets to cover its immediate liabilities. Commonly known as the quick ratio, this metric is more …
Read More »Stop-Loss Order
0.0 00 What is a ‘Stop-Loss Order’? An order placed with a broker to sell a security when it reaches a certain price. A stop-loss order is designed to limit an investor’s loss on a position …
Read More »Contango
0.0 00 What is ‘Contango’? Contango is a situation where the futures price of a commodity is above the expected future spot price. Contango refers to a situation where the future spot price is below …
Read More »Marginal Utility
0.0 00 What is ‘Marginal Utility’? Marginal utility is the additional satisfaction a consumer gains from consuming one more unit of a good or service. Marginal utility is an important economic concept because economists use it …
Read More »Revolving Credit
0.0 00 What is a ‘Revolving Credit’? Revolving credit is a line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually …
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