Archives: Terms

Definition of Barter Economy A barter economy is an economic system where goods and services are exchanged directly for other goods and services without using a medium of exchange, such as money. This type of economy relies on the double coincidence of wants, meaning each party in the exchange must […]

Definition of Barriers to Exit Barriers to exit are obstacles or impediments that prevent a company from leaving a market or industry. These barriers can be financial, contractual, emotional, or based on strategic considerations. High fixed costs, specialized assets that are difficult to sell, long-term lease obligations, and significant severance […]

Definition of Bargaining Power Bargaining power refers to the relative ability of parties in a negotiation to influence the terms and conditions of agreements. It is a measure of the strength one party has to convince another party to accept their terms, during the negotiation process. This power is derived […]

Definition of Bargaining Bargaining refers to the negotiation process between two or more parties aimed at reaching an agreement or resolving a dispute over certain terms, such as the price of a good, the conditions of a contract, or wages for work. It is a fundamental economic behavior seen in […]

Definition of Banking System The banking system refers to the network of institutions that provide financial services to individuals, businesses, and governments. This network includes a wide range of entities such as central banks, commercial banks, savings banks, credit unions, and investment banks. The primary functions of the banking system […]

Definition of Banking Banking is the business conducted or services offered by a bank. Banks are financial institutions that are licensed to receive deposits and make loans. They may also provide various other financial services, such as wealth management, currency exchange, and safe deposit boxes. The primary purpose of banks […]

### Bankers Automated Clearing System (BACS) Definition of Bankers Automated Clearing System (BACS) The Bankers Automated Clearing System, commonly known as BACS, is a UK-based electronic system used to make payments directly from one bank account to another. Mainly, it is used for transactions such as payroll, direct debits, and […]

Definition of Banker’s Draft A banker’s draft is a payment mechanism where the bank issuing the draft guarantees the amount to the payee. Unlike a personal check, the funds for a banker’s draft are drawn directly from the bank’s funds and not the personal account of the payer, providing an […]

Definition of Bank Regulation Bank regulation encompasses the set of laws, rules, and guidelines designed to maintain the integrity, safety, and efficiency of the banking system. These regulations are implemented by government agencies or banking supervisors to ensure banks operate in a manner that is fair, transparent, and resistant to […]

Definition of Bank of Credit and Commerce International (BCCI) The Bank of Credit and Commerce International (BCCI) was an international bank founded in 1972 by Agha Hasan Abedi, a Pakistani financier. The bank was registered in Luxembourg with head offices in Karachi and London. BCCI came to operate in over […]