What is a Debit? In bookkeeping or accounting, a debit is a record in an account ledger that reflects an increase in assets or expenses or a decrease in a liability of equity account. It is always reflected on the left side of the account ledger. Debit is often abbreviated as Dr. What is a Credit? In bookkeeping or accounting, a credit is a record i...

What is a Breakup Fee? A breakup fee is sometimes called a termination fee, this is a fee (penalty) used in takeover agreements, otherwise known as mergers and acquisitions. A breakup fee is paid by a seller to the buyer when he backs out of the agreement to sell to the buyer. In the context of mergers and acquisitions, the target company is the sel...

What is a Family of Funds? A family of funds refers to a group of funds whose marketing and administration activities are facilitated by a single investment company. It provides people with a wide range of investment options. Generally, most people will always prefer to be loyal to the brand they trust. It is a concept that exists in the investment ...

What is Accounts Receivable Conversion? An accounts receivable conversion (ARC) is a method through which paper checks are converted to electronic payments using the Automated Clearing House (ACH). Checks that a company receives in exchange for an account receivable is electronically scanned and then changed to an electronic payment. ARC is mostly u...

What is a Swap? A swap refers to an exchange of a financial instrument between two parties. It is usually in the form of a derivative contract, and it takes place at a predetermined time as specified in the contract. Swap may be anything that ranges from cash flow, investment, liability, or payment for the other. However, in most cases, it involves ...

What is the Term Auction Facility (TAF)? TheTerm Auction Facility, or TAF, is a provisional fiscal policyinitiative employed by the United States Federal Reserve, that seeks to ameliorate heightened business pressure that threatens short-term funding markets. The primary goal of TAF is to increase liquidity in credit markets in the United States by ...

What is an Air Waybill? An Airway Bill, also known as an "airway consignment note", is a non-negotiable (cannot be transferred to others for value) document identifying goods being shipped with an international airline (carrier). It is a receipt issued by a carrier to a shipper that evidences a contract between a shipper and a carrier to transport g...

What is Crowdfunding? Crowdfunding is a financing method where funds are raised from little donations of a large number of people, the donations are often made online. Many individuals or business owners raise funds for their businesses using crowdfunding.  This financing practice entails taking advantage is a vast network of people to raise funds f...

How does Discretionary Fiscal Policy affect Interest Rates? Because fiscal policy affects the quantity that the government borrows in financial capital markets, it not only affects aggregate demand—it can also affect interest rates. In the chart below, the original equilibrium (E0) in the financial capital market occurs at a quantity of $800 billion...

What are the Types of Business Interview?  There are multiple types of professional interview. The most common are discussed individually below: What is an Informational Interview? The objective of this interview is to ask for advice and learn more about a particular career field, employer or particular job. Interviewing experts in their field is on...