Federal Reserve System – Explained

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

What is the Federal Reserve System? The Federal Reserve System (FRS), variously referred to as the Federal Reserve or the Fed, is the central banking authority in the United States of America that is responsible for regulating the monetary and financial system in the...

Financial Accounting Standards Board – Explained

by TheBusinessProfessor | Feb 23, 2025 | Managerial & Financial Accounting & Reporting

What is the Financial Accounting Standards Board (FASB)?The Financial Accounting Standards Board (FASB) is an independent, private-sector, non-profit organization that is responsible for the formulation and promulgation of financial accounting and reporting standards...

Equity Indexed Annuity – Explained

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

What is an Equity Indexed Annuity? An Equity Indexed Annuity (EIA), often referred to as a fixed indexed annuity or simple indexed annuity, is a type of unconventional financial asset that is typically considered as an alternative to conventional investment assets...

Earnings Basis – Explained

by TheBusinessProfessor | Feb 23, 2025 | Business Finance, Personal Finance, and Valuation Principles

What is an Earnings Basis?The term Earnings Basis can have vastly differing denotations, depending on whether it is used in the context of an employee or an organization. In the context of an individual employee, earnings basis refers to the basis of an employees...

Vertical Integration – Explained

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

What is Vertical Integration? Vertical integration is basically when a company is able to control several vertical levels of the supply chain. In the supply chain, we have a number of stages such as; raw material, manufacturing, distribution, and retail. A company may...

Variable Interest Rate – Explained

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

Update Table of Contents What is a Variable Interest Rate?How Does a Variable Interest Rate Loan Work?Forms of Variable Interest RateDisadvantage of Mortgage Variable Interest RateEffects of Variable interest rate What is a Variable Interest Rate?Variable interest...

Autoregression – Explained

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

What is Autoregression?An Autoregressive model (AR model) is basically the method used to model a future or current behavior in a time series, using data from past behaviors in the same time series. The process is basically a linear regression of the variable...

Interest Rate Swap – Explained

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

What is an Interest Rate Swap?An interest rate swap is a form of contract where the parties agree to exchange or swap the interest payments on two securities. It is primarily a tool used by bond investors. A company that has issued corporate bonds seeks to improve its...

Variable Annuity – Explained

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

What is a Variable Annuity?A variable annuity refers to an annuity contract type which allows for capital accumulation on a deferred tax basis. Contrary to a fixed annuity which offers an interest rate that is guaranteed, as well as, a minimum annuity payment,...

Mercantilism – Explained

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

What is Mercantalism?Mercantilism is an economic theory that holds that a nation’s wealth can increase when the government regulates the nation’s wealth by maximizing exports and reducing imports. Mercantilism was developed in the 16th and 18th centuries....