Business Finance

A capped floating rate note is a financial instrument that combines elements of a traditional floating rate note with a cap on the maximum interest rate payable. It offers investors an opportunity to benefit from potential interest rate increases up to a certain level while limiting their exposure to excessively high rates. This type of […]

A capped mortgage is a type of mortgage loan where the interest rate has an upper limit or cap beyond which it cannot rise during a specified period, providing borrowers with protection against rising interest rates. This financial product combines features of both fixed-rate and adjustable-rate mortgages, offering borrowers a measure of security against potentially

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