Robin Hood Effect (Economics) – Explained

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

What is the Robin Hood Effect?The Robin Hood effect is an economic situation whereby wealth is stolen from the rich to give to the poor in society in order to reduce economic inequality. The Robin Hood Effect entails the redistribution of wealth in the economy in...

Neutrality of Money – Explained

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

What is the Neutrality Of Money?The neutrality of money is a theory that maintains that changes in the supply of money in an economy only affect nominal variables and not real variables. This means that when the Cbetra bank decides to change the supply of money,...

Interest Rate Ceiling – Explained

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

Update Table of Contents What is an Interest Rate Ceiling?How Does an Interest Rate Ceiling Work?Interest Rate Regulations What is an Interest Rate Ceiling?An interest loan ceiling is a regulatory measure that prevents lenders and financial institutions from charging...

Loan Syndication – Explained

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

Update Table of Contents What is Loan Syndication?How Does Loan Syndication Work?Financial Institution Coordinates Loan Syndication What is Loan Syndication?Loan syndication occurs when a borrower requests an amount of loan too large, the risks too high, the uses of...

Capital Control – Explained

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

What is Capital Control?Capital control refers to a set of measures and procedures taken by the government, Federal Reserve, Central Bank, or other bodies to control the inflow and outflow of foreign capital in an economy. Any regulatory measure targeted at limiting...

Bank Discount Rate – Explained

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

Update Table of Contents What is a Bank Discount Rate?How Does a Bank Discount Rate Work? What is a Bank Discount Rate?The bank discount rate refers to the interest rate that the Central bank or Federal Reserve charges for short-term loans issued to commercial banks...

Channel Stuffing – Explained

by TheBusinessProfessor | Feb 23, 2025 | Sales

What is Channel Stuffing?Channel stuffing is a practice in business whereby a seller or a company sends more goods to a distributor than what he is capable of selling. This practice entails stuffing a distribution channel with more goods than what the channel can...

Contestable Market Theory – Explained

by TheBusinessProfessor | Feb 23, 2025 | Strategy, Entrepreneurship, & Innovation

What is Contestable Market Theory? Contestable market theory is an economic concept that states that companies which have few rivals behave in a competitive manner because the market entry conditions are weak and allow for potential new entrants. The contestable...

Click and Mortar (Business Model) – Explained

by TheBusinessProfessor | Feb 23, 2025 | Strategy, Entrepreneurship, & Innovation

What is Click and Mortar Model?Click and mortar, otherwise called click and bricks, is a business model that combines both online and offline channels for business operations. This model takes advantage of the trend toward online shopping. This model is advantageous...

Closed Virtual Currency – Explained

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

What is a Closed Virtual Currency?A closed virtual currency is a currency in the digital form used in the specific virtual community or market it was created for. A closed virtual currency is not regulated in a real economy, this currency cannot be used as a legal...