Actually, the cost of funds refers to the interest rate charged by the financial institutions for the funds they use in their business. It is one of the most important input costs for a financial institution because, as the funds are used for short-term and long-term lending to borrowers, lower c.....
The downside risk is the financial risk associated with losses. It is an estimation of a security’s potential to suffer a decline in value if the market conditions change or the amount of loss that could be sustained as a result of the decline. That is, it is the risk of the actual return b.....
There are several aspects of the variable rate mortgage (VRM), including the interest rate index, initial rate duration, initial adjustment limit, minimum lifetime rate, maximum lifetime rate, and adjustment interval. It is also known as an adjustable-rate mortgage (ARM). VRM is a form of home lo.....
A cost overrun is the amount by which actual expenditures exceed the planned amount. It is also known as a cost increase or budget overrun, which involves unexpected incurred costs. These are common in large-scale projects, such as infrastructure and information technology projects. When these co.....
In the midst of the epidemic, the emergence of new media business models and the shift in privacy that came with iOS may seem like a terrible time to enter digital advertising and marketing. Nevertheless, we spoke to top venture capitalists who said they were still looking at investment opportuni.....
The type of mortgage under which the interest rate added to the outstanding balance varies over the life of the loan is a variable-rate mortgage, adjustable-rate mortgage (ARM), or tracker mortgage. Initially, for a period of time, an ARM will yield a fixed interest rate. After the time frameR.....
A mortgage recast, also referred to as repayment or repayment of the loan, is when the borrower repays only part of the entire amount of the unpaid principal resulting in a reduced balance of the loan, and the financial institution then recalculates the monthly repayment of the mortgage loan depe.....
Feedback is the final component and one of the important factors in the process of communication. It is important in two-way communication. It is defined as the response given by the receiver to the sender. It completes two-way communications and provides a basis of understanding regarding the su.....
An amortized loan is a sort of advance with planned, intermittent installments that are applied to both the advance’s chief sum and the premium accumulated. A bit of each credit installment will go towards the head of the advance, and the rest of go towards interest charges. This payment of.....
Add-on interest refers to a form of measurement to calculate the net interest owed on a loan. The amount of monthly payments to be made is then divided by the sum. The consequence is a loan incorporating interest and principal into one amount owed. This structure for interest guarantees that all .....
White-collar crime (or corporate crime, more accurately), crime committed by individuals who, mostly by virtue of their professions, abuse social, economic, or technical influence for personal or corporate benefit. It was first characterized by the American crime analyst Edwin Sutherland in 1939 .....
Debentures are a long-term source of finance. Debentures as a source of finance suit companies that have regular earnings to service the debt have a higher proportion of fixed assets in the structure of their assets which offers adequate security and motivates investors. A debenture is a form of .....