by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is the Black Box Model?A black box model describes the relationship between the inputs and outputs of a system. This model is used in different contexts and has different meanings. As it is often used in science, computing and engineering, a black box model is a...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is an Inflection Point?Inflection refers to a point in a graph showing the change of a curve from concave to convex. It is the point at which the curvature of the concavity of a curve changes. An inflection point occurs when the curve goes form concave downward...
by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is the House Money Effect?The house money describes a cognitive bias in which investors take higher risks when reinvesting than they would when investing their initial capital. This bias explains the tendency of investors to take on greater risks because they...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is the Feedback-Rule Policy?A Feedback-Rule Policy is a response of a government to prevailing economic situations. When a government is prompted to take certain actions due to the prevailing economic circumstances such as economic instability, it can be...
by TheBusinessProfessor | Feb 23, 2025 | Banking, Lending, and Credit Industry
Update Table of Contents What is a Fully Amortizing Payment?How Does a Fully Amortizing Payment Work?Fully Amortizing Payments Versus Interest-Only Payments What is a Fully Amortizing Payment?A Fully amortizing payment is a loan payment made periodically according to...
by TheBusinessProfessor | Feb 23, 2025 | Banking, Lending, and Credit Industry
Update Table of Contents What is the Applicable Federal Rate for Private Loans?How Does the Applicable Federal Rate Work?Three Distinct RatesKey TakeawaysExample of How to Use the Applicable Federal Rate (AFR)Practical Uses of AFR What is the Applicable Federal Rate...
by TheBusinessProfessor | Feb 23, 2025 | Business Finance, Personal Finance, and Valuation Principles
What is Airdrop of a Cryptocurrency?An Airdrop is used in Cryptocurrency to describe the free distribution of token or coin made to numerous wallets. Free distribution of virtual currency tokens or coins is often made to the wallets of community members as a reward or...
by TheBusinessProfessor | Feb 23, 2025 | Operations, Project, & Supply Chain Management
What is Just-In-Case Inventory Management?Just in case (JIC) is an inventory management strategy in which a company stores a large inventory to prevent running out of stock. It is most useful when a company forecasts a high demand for products or a scarcity of...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is the Balassa-Samuelson Effect?The Balassa-Samuelson Effect is an effect that describes the relationship between an increase in productivity, higher exchange rates and an increase in wage growth. This effect shows that when there is an increased level of...
by TheBusinessProfessor | Feb 23, 2025 | Business Finance, Personal Finance, and Valuation Principles
What is a Captive Finance Company?A Captive Finance Company is a wholly-owned subsidiary whose function is to finance consumer purchases or finance retail items sold by the parent company. In other words, a captive finance company helps the customers of the parent...
