Float (Banking) – Explained

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

Update Table of Contents What is Float?How Does Float Work? Back to:BANKING, LENDING, & CREDIT INDUSTRY What is Float?Float, in the banking system, refers to money briefly counted two times because of the delays in check processing. Float is built as soon as the...

Fixed-Rate Mortgage – Explained

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

Update Table of Contents What is a Fixed-Rate Mortgage?How Does a Fixed-Rate Mortgage Work? What is a Fixed-Rate Mortgage?A fixed-rate mortgage is a loan where the debtor has to pay a fixed interest for the entire loan term. Usually, lenders provide either fixed,...

Last-in-First-Out (LIFO) – Explained

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

What is the Last-In-First-Out (LIFO) Accounting Method?LIFO (Last-in First Out) is an asset-management and inventory accounting method. Per this system, the assets (inventory) received or manufactured last are the first to be sold. Older inventory is sold only after...

Federal Deposit Insurance Corporation (FDIC) – Explained

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

What is the Federal Deposit Insurance Corporation?The Federal Deposit Insurance Corporation (FDIC) is an autonomous federally-controlled agency that backs deposits in the banks in case of bank failures. It was formed in 1993 to restore public confidence and to promote...

ISO 9000 – Explained

by TheBusinessProfessor | Feb 23, 2025 | Operations, Project, & Supply Chain Management

What is ISO 9000?In 1987, the International Organization for Standardization (ISO) established the ISO 9000 family of standards. This family comprises a system of numbers utilized in documenting a systems quality effectiveness.Where does ISO 9000 come from?This family...

International Bank Account Number – Explained

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

Update Table of Contents What is an International Bank Account Number?How Do International Bank Account Numbers Work? What is an International Bank Account Number?An IBAN or International Bank Account Number is necessary to identify your bank account if you wish to...

International Finance Corporation – Explained

by TheBusinessProfessor | Feb 23, 2025 | Global Business, International Law & Relations

What is the International Finance Corporation?The International Finance Corporation (IFC) is an organization established in 1956 by the World Bank Group with an aim of reducing poverty and creating jobs in developing countries through the development of private...

International Energy Agency (IEA) – Explained

by TheBusinessProfessor | Feb 23, 2025 | Global Business, International Law & Relations

What is the International Energy Agency?The International Energy Agency (IEA) is comprised of 30 member nations whose purpose is to ensure that there is stable, cost-efficient and clean energy available for its members. It focuses on energy security, economic...

Insufficient Funds (NSF) – Explained

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

Update Table of Contents What is Insufficient Funds? How Does Insufficient Funds Work?How to Avoid Penalties  What is Insufficient Funds? Insufficient funds, as the name implies, is a situation where a particular account does not have enough funds, capital or...

Illiquid (Asset) – Explained

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

What is an Illiquid Asset?Illiquid indicates those assets or securities that cannot be sold easily or converted into cash due to shortage of buyers or without loss in its value. A firm may be identified to be illiquid if it lacks the cash needed to meet its current...