Archives: Terms

Definition of Renewable Energy Renewable energy refers to energy generated from natural resources that are replenished on a human timescale. This includes sources like sunlight, wind, rain, tides, waves, and geothermal heat. Unlike fossil fuels, which take millions of years to form and can be depleted, renewable energy resources are […]

Definition of Reneging Reneging refers to the act of going back on a promise, agreement, or contract. This term is often used in various contexts, including business, finance, and personal commitments, to describe situations where one party fails to fulfill their obligations or changes the terms after an agreement has […]

Definition of Relief Relief in economics refers to a wide range of financial aid or support provided by the government or other institutions to individuals, businesses, or regions that are experiencing economic hardship. This assistance can take various forms, including direct cash transfers, tax breaks, grants, or subsidized loans. The […]

Definition of Relative Income Hypothesis Relative Income Hypothesis posits that individuals’ consumption and savings decisions are influenced not just by their absolute income but by their income relative to the income of others. This theory suggests that individuals are concerned with their standing or status in relation to others, and […]

Definition of Relationship Investor A relationship investor is an individual or entity that commits to long-term investment in a company, fostering ongoing collaboration and support. Unlike typical investors who may focus on short-term gains, relationship investors prioritize the development and sustained growth of the firm through continuous engagement. This unique […]

Definition of Relationship Banking Relationship banking is a strategy used by banks to build long-term and mutually beneficial relationships with their customers. This approach focuses on understanding the specific needs and circumstances of clients, providing personalized banking services, and developing a strong, ongoing relationship that extends beyond mere transactions. Relationship […]

Definition of Reinsurance Reinsurance occurs when an insurance company transfers portions of their risk portfolios to other parties to reduce the likelihood of having to pay a large obligation resulting from an insurance claim. It is essentially insurance for insurers. By leveraging reinsurance, primary insurance companies can lessen the impact […]

Definition of Regulatory Capture Regulatory capture occurs when a regulatory agency, created to act in the public interest, instead advances the commercial or special interests of the industry it is charged with regulating. This phenomenon typically arises when regulators, often due to prolonged association and interactions with the industry stakeholders […]

Definition of Regulatory Agency A regulatory agency is a government body responsible for exercising authority over some area of human activity by creating and enforcing rules and regulations. These agencies are essential for implementing laws passed by legislative bodies and ensuring compliance with statutory requirements. Their scope of work can […]

Definition of Regret Theory Regret Theory is a behavioral economic concept which suggests that individuals anticipate regret if they make the wrong choice and therefore take this potential regret into account when making decisions. Unlike traditional economic theories that assume rational behavior where individuals strive to maximize their utility based […]