Finance FAQs

What is meant by the term National Debt?
When a government spends more than it receives in taxes, it runs a budget deficit, which is usually covered by issuing debt obligations to domestic and/or international investors. In the US, these obligations are Treasury bills, Treasury notes, an...... More »
How does the current situation in the Middle East affect the US economy?
An interruption in supply and demand and economic warfare, coupled with unfair business practices in the US causes the price of fuel to rise. During the original invasion of Iraq, tanker traffic in the Persian Gulf was drastically cut for fear of ...... More »
Does capital inflow lower US interest rates?
Basic textbook models, such as the Mundell-Fleming model, say that capital inflow occurs due to the domestic interest rate being higher than the world interest rate, and thus capital inflow. So according to this model, it can lower interest rates ...... More »
What is Universal Banking?
It generally refers to the combination of commercial banking and investment banking. It is a supermarket for both wholesaler n retailer financial services as it offers a wide range of financial services ...... More »
What are the advantages of leaving resource allocation to price allocation?
The 5 advantages are Neutral, Flexible, Freedom of choice, No administrative cost and lastly Diminished incentives. Distinguish between diminishing returns and diseconomies of scale. Diseconomies of scale I guess means as you produce more it becom...... More »
What is PPS?
Packets per second (pps) are a measure of throughput for network devices such as bridges, routers, and switches. It is a reliable measurement only if all packet sizes are the same. Vendors will often rate their equipment based on pps, but make sur...... More »
What is meant by turnover?
The turnover refers to the sales volume for a specific period like quarterly, semi annually or annually. It can be measured with sales volume figure or no. of days taken. ...... More »
What are the fictitious assets?
These are like intangible assets, which cannot be seen or touched. Actually, these are not assets but some expenditure, which cannot turn to profit and loss account of a particular period that is why these items are shown on assets side of balance...... More »
What is retail banking?
Retail banking refers to the banking done with the retail client (e.g. the normal people) rather than business or organizational customers. ...... More »
What is customer account?
Debtors account and bills receivable account are theoretically same. Both are called as receivables. When we sold goods to debtors account is debited. If we receive a bill from that debtor, we open bills receivable account by closing that debtor a...... More »