Definition of Capital Adequacy Ratio (CAR) Capital Adequacy Ratio (CAR) is a measure used by financial regulators to assess the financial stability and safety of a bank. It is calculated as the ratio of a bank’s capital to its risk-weighted assets. The purpose of this ratio is to ensure that […]
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Capital Asset
Definition of Capital Asset A capital asset is a long-term investment that is expected to provide a future economic benefit. These assets are purchased with the intention of holding them for an extended period, usually more than one year, with the expectation of generating income, appreciation, or both. They include […]
Read moreProducer Price Index (PPI)
Definition of Producer Price Index (PPI) The Producer Price Index (PPI) tracks the fluctuation in prices that domestic producers receive for their production over a period of time. It gauges wholesale-level inflation using a collection of indexes calculated for various industries and product categories. The PPI is published on a […]
Read moreCapital Asset Pricing Model (CAPM)
Definition of Capital Asset Pricing Model (CAPM) CAPM is a finance model that outlines the connection between the expected return on assets, especially stocks, and systematic risk, which is the general hazard involved in investing. The model creates a linear association between the risk and the required return on investment. […]
Read moreAggregate Demand
Definition of Aggregate Demand Aggregate demand (AD) is the total amount of finished goods and services demanded in an economy at a given overall price level and in a given time period. It is the sum of all the demand for individual goods and services in an economy, measured by […]
Read moreBuyer’s Market
Definition of Buyer’s Market A buyer’s market is a market in which the supply of goods or services exceeds the demand. That means, overall, buyers have more bargaining power than sellers and can often get better deals. This is in contrast to a seller’s market, in which the demand exceeds […]
Read moreBusiness To Government (B2G)
Definition of Business to Government (B2G) Business to Government (B2G) is a type of business transaction in which a company sells goods or services to a government agency. That means it is the opposite of business-to-consumer (B2C) and business-to-business (B2B) transactions, in which a company sells goods or services to […]
Read moreBusiness-to-Consumer (B2C)
Definition of Business-to-Consumer (B2C) Business-to-consumer (B2C) is a type of business model in which a company sells products or services directly to consumers. That means, unlike business-to-business (B2B) or business-to-government (B2G) companies, B2C companies don’t have to go through any intermediaries like wholesalers or retailers. Instead, it can sell its […]
Read moreBureau Of Labor Statistics (BLS)
Definition of Bureau of Labor Statistics (BLS) The Bureau of Labor Statistics (BLS) is a federal agency that collects, analyzes, and publishes data on the labor market in the United States. It is part of the U.S. Department of Labor and is responsible for providing information on employment, wages, prices, […]
Read moreBusiness Asset
Definition of Business Asset A business asset is any resource owned by a company that has commercial or exchange value. That means it can be used to generate revenue or to reduce costs. Business assets can be tangible (e.g., buildings, equipment, inventory) or intangible (e.g., patents, copyrights, trademarks). Example To […]
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