Business Finance

A captive finance company is a subsidiary established by a parent company, typically in a non-financial industry, to provide financing options to customers purchasing the parent company’s products or services. These subsidiaries specialize in offering loans, leases, or other forms of financing directly related to the parent company’s products, thereby facilitating sales and enhancing customer […]

Case of Need is a term often used in the financial and business world. It refers to a situation where financial or other resources are required urgently due to unexpected circumstances. This concept is particularly important for businesses and individuals who need to be prepared for emergencies or unforeseen events. Understanding this term can help

Cash Against Documents (CAD) is a payment term used in international trade where the buyer pays for the goods before receiving the shipping documents from the seller. These documents are essential for the buyer to take possession of the goods from the carrier. This method provides security for both the buyer and the seller, ensuring

Cash flow refers to the movement of money into and out of a business or individual’s accounts over a specific period. It is a crucial financial metric used to assess the liquidity, solvency, and overall financial health of an entity. Cash flow is essential for ensuring that a business can meet its financial obligations, such

Cash price refers to the actual amount of money that is paid or received for a product or service in a transaction where payment is made immediately or within a short period. It is the total cost of an item or service when paid in full with cash or its equivalent at the time of

Cash dividend refers to a distribution of profits by a corporation to its shareholders in the form of cash payments. It is a portion of the company’s earnings that is paid out directly to shareholders, typically on a regular basis, as a reward for their investment in the company. 1. Types of Cash Dividends Types:

A central bank is a key institution responsible for overseeing a country’s monetary policy and regulating its financial system. It acts as the banker to the government and commercial banks, controls the nation’s money supply, and plays a crucial role in maintaining economic stability. 1. Roles and Responsibilities 2. Structure and Governance Organizational Setup: 3.

The Central Bank Discount Rate refers to the interest rate at which commercial banks can borrow funds directly from a country’s central bank, typically as a means to meet short-term liquidity needs or to manage reserve requirements. 1. Definition and Purpose 2. Role in Monetary Policy Setting and Adjustment: 3. Calculation and Implementation Mechanics of

Central Parity refers to a fixed exchange rate determined by a central bank or monetary authority against a reference currency. It serves as a benchmark or baseline for managing a country’s currency value relative to other currencies in the foreign exchange market. 1. Definition and Purpose 2. Role in Currency Management Establishing Exchange Rates: 3.

A Certain Annuity is a financial arrangement where periodic payments are guaranteed to be made for a specified period, regardless of the life or death of the annuitant. This concept ensures a fixed stream of income over a predetermined duration, offering stability and predictability in financial planning. 1. Definition and Features 2. Examples of Certain