by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is a Minsky Moment?Minsky Moment is named after Hyman Minsky, an economist who argues that markets (particularly bull markets) have innate characteristics of being unstable. The bull market refers to a period of time in which the market experiences a sudden...
by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is the Measuring Principle?The measuring principle is an indicator that pinpoints the minimum price of varying financial securities for traders. This principle is a mathematical technique using the technical analysis of historical stock patterns to state if there...
by TheBusinessProfessor | Feb 23, 2025 | Research, Quantitative Analysis, & Decision Science
What is Mean Reversion?Usually, mean reversion is a financial indicator stating that asset prices and historical returns will return to their mean or its average in due time. This mean or average may refer to the historical average of the price, returns or another...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is the McCallum Rule?The McCallum rule is a monetary policy rule that specifies the level of the monetary base a central bank can maintain in a country. This rule explains the interaction between the total amount in the monetary base and a country’s...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is a Monetary Base?The money base of a country refers to the total amount of currency that is in circulation or held in the central banks reserves. It is a term used in economics to describe the quantity of money or currency held in the hands of the public or as...
by TheBusinessProfessor | Feb 23, 2025 | Research, Quantitative Analysis, & Decision Science
What is Path Dependence?Path dependency is a theory that explains how choices for present situations are made based on past behavior, knowledge, and history. This is true even if unrelated or irrelevant to the current situation.This theory also extends to products and...
by TheBusinessProfessor | Feb 23, 2025 | Banking, Lending, and Credit Industry
Update Table of Contents What is a Parallel Loan?How Does a Parallel Loan Work?Example of How a Parallel Loan WorksPros and Cons of a Parallel LoanSpecial Considerations for a Parallel Loan What is a Parallel Loan?A parallel loan is a type of loan in which two...
by TheBusinessProfessor | Feb 23, 2025 | Banking, Lending, and Credit Industry
Update Table of Contents What is a Federal Advisory Council?How Does a Federal Advisory Council Work? What is a Federal Advisory Council?The Federal advisory council or (FAC) is an organized body that makes consultations with and advises the Federal Reserve Board of...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is the Farm Price Index (FPI)?The Farm Price Index (FPI), or Agricultural Price Index, is a monthly index that monitors the prices of various crops and livestock received by farmers. The U.S. Department of Agriculture (USDA) releases the index to monitor price...
by TheBusinessProfessor | Feb 23, 2025 | Business Finance, Personal Finance, and Valuation Principles
What is a Private-Purpose Bond?A private-purpose bond is a municipal bond that allows over 10% of its proceeds to be used for private activities. When a municipal bond is issued and a significant portion of its proceeds is used for a project or activity run by a...
