What is Fractional Reserve Banking? Fractional-reserve banking is a system in which only a fraction of the Bank deposits are backed by real cash and available for withdrawal. This is done to theoretically expand the economy by freeing up capital for lending. Today, most financial systems in economies use fractional-reserve banking. Key points to remember…
What is conspicuous consumption? Conspicuous consumption is the purchase of goods or services for the specific purpose of displaying wealth. Conspicuous consumption is a way of showing one’s social status, especially when publicly displayed goods and services are too expensive for other members of a person’s class. This type of consumption is usually associated with…
A completely cashless society sounds appealing to some, and while we’ve made strides to make it possible, it’s not yet a reality. Despite the magic of PayPal, Square, credit cardand mobile walletssome of us need to carry cash. Although we can choose from a rich array of singles, palms, sawbucks, Jacksons, $50s and Benjamins, there…
What is Radner’s equilibrium? Radner’s equilibrium is an extension of Arrow-Debreu general equilibrium that explores the competitive equilibrium condition under uncertainty to explain the actual existence of financial institutions and markets, such as money and stock exchanges . Radner Equilibrium was first introduced by American economist Roy Radner in a 1968 paper and further explained…
Company Overview APHW was founded in 1999, and is based in Jackson, Michigan. The company foregrounds its Christian beliefs and values, saying that “every member of our team shares a commitment to the Christian mission, values, and vision that help make APHW an industry leader.” The company also claims that it is different from its…
What is a covered tender? A covered tender is an investment strategy in which an investor sells short part of the shares they hold in anticipation that all shares tendered will be accepted. This strategy is used to hedge against the risk of loss, should the takeover bid fail. The offer locks in the shareholder’s…
final verdict When choosing a home warranty plan, it’s essential to consider the type of coverage you need, overall costs, and the company’s claims process. It’s good to research and compare multiple companies as coverage and rates vary. US Home Warranty is our top pick for 2022. We like its customizable plans, nationwide coverage, reasonable…
What is fuzzy logic? Fuzzy logic is an approach to variable processing that allows multiple possible truth values to be processed through the same variable. Fuzzy logic attempts to solve problems with an open and imprecise spectrum of data and heuristic which allows for a range of specific conclusions. Fuzzy logic is designed to solve…
There never seems to be a shortage of people who want to work on Wall Street. Due to above-average compensation, the financial industry has no trouble attracting talented professionals who want to become analysts, traders or managers. As in any industry, there are no set rules for getting your foot in the door. That said,…