Farm Credit System – Explained

by TheBusinessProfessor | Feb 23, 2025 | Banking, Lending, and Credit Industry

Update Table of Contents What is a Farm Credit System?How Does the Federal Farm Credit System Work? What is a Farm Credit System?The Farm Credit System (FCS) is a lending network targeted at farmers, ranchers, aquatic producers, and the agricultural community in...

Permanent Income Hypothesis – Explained

by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy

What is the Permanent Income Hypothesis?This is a hypothesis stating that consumers will spend at a level relative to their expected level of long-term income. The consumer sees a certain level of income as recurring or permanent. How is the the Permanent Income...

Charitable Contribution Deduction – Explained

by TheBusinessProfessor | Feb 23, 2025 | Business Taxation

How Does a Charitable Contributions Deduction Work?The charitable contributions tax deduction allows a taxpayer to deduct from their taxable income the amount of money or value property donated to a qualifying charitable entity. The deduction is subject to numerous...

Relative Return – Explained

by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets

What is Relative Return?Relative return is a measure used in investing that estimates the return on an asset or any other investment portfolio over a specific period of time relative to a theoretical benchmark. The relative return is calculated as the difference...

Sensitivity Analysis – Explained

by TheBusinessProfessor | Feb 23, 2025 | Research, Quantitative Analysis, & Decision Science

What is Sensitivity Analysis?Sensitivity analysis, also referred to as simulation analysis, is a technique employed in financial modeling to determine how different values of a set of independent variables can influence a particular dependent variable under certain...

Volcker Rule – Explained

by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets

What is the Volcker Rule?The Volcker Rule is the common name for section 13 of the Bank Holding Company Act of 1956. It is a federal regulation that prohibits banks as well as institutions that own banks from conducting proprietary trading activities from their own...

Smithsonian Agreement – Explained

by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy

What is a Smithsonian Agreement?The Smithsonian Agreement was an agreement signed by 10 top industrialized countries in 1971to regulate international payment and exchange at that moment. The agreement made an amendment to the fixed exchange rates stipulated in the...

Survivorship Bias – Explained

by TheBusinessProfessor | Feb 23, 2025 | Management, Leadership, & Organizational Behavior

What is Survivorship Bias?Survivorship bias is a type of selection and cognitive bias that occurs when survival is used as a metric for making vital decisions. That is, it is an error that occurs when people or things that survived certain processes and stages are...

Certificate of Government Receipt (COUGR) – Explained

by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets

What is a Certificate of Government Receipt?A Certificate of Government Receipts (COUGR) is a U.S treasury Bond sold by the United States Department of Treasury to investors through A.G. Becker Paribas. Investors buy this type of bond at a discount and redeem it at...

Cash and Carry Transaction – Explained

by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets

What is a Cash and Carry Transaction?A cash and carry transaction is also known as a cash and carry arbitrage, this transaction applies to the trade of derivative products or futures contract. In a cash and carry transaction, the price of a commodity is lower than the...