Finance is the discipline of study that basically deals with money, management of money, and the value of money over time. It teaches us how to obtain the required fund at least possible cost and how to invest our available resources for maximum possible return. Finance intends to price assets based on their Rate of … Read more
LIBOR stands for London InterBank Offered Rate (aka ICE LIBOR) is the benchmark interest rate for interbank short-term unsecured loans. LIBOR is calculated based on submission of interest rates by panel banks (ICE LIBOR Currency Panels), that they expect they would be charged by others for borrowing money. So, LIBOR is an average rate at … Read more
Simply, a mortgage is a loan to purchase your home. A bank or mortgage lender gives you money to buy your dream house. Sounds great, huh! When you decided to buy a house and have decent monthly income but you could not pay the entire value now, then the bank or mortgage lenders come like … Read more
Financial leverage is the degree to which an entity uses interest-bearing debt to finance its assets. The higher the share of debt financing in the capital structure of the company, the higher the financial leverage and also the financial risk. A high proportion of financial debt also means high-interest payments. Which may have a negative … Read more
Cashless society is an economic concept where financial transactions are executed in an electronic format rather using banknote. In a cashless society, each party will have an electronic card or device which will be used to execute the transaction. The cashless transaction may be executed in the form of Credit card, Debit card, Mobile wallet, … Read more
The letter of credit (LC) also called “commercial credit” or “documentary credit”, is one of the most reliable means of payment in international trade. In this article, we will try to understand what is the letter of credit, how does it work, what types there are and some more curiosities of this instrument, that is … Read more
