What is Countercyclical?  Cyclicality of the fiscal policy simply refers to a change in direction of government expenditure and taxes based on economic conditions. These pertain to decisions by policymakers based on the fluctuations in economic growth. There are two types of cyclical fiscal policies - counter-cyclical and pro-cyclical. Counter-cycli...

What is a Back-End Ratio? The debt-to-income ratio, is also known as the back-end ratio is indicative of how much of a persons income monthly paid toward outstanding debts. Expenses such as child support, credit card payments, mortgage payments (insurance, taxes, interest, and principal) and other types of loan payments equal total monthly debt. Bac...

What is a Closed-End Management Company? A closed-end management company is an investment company that operates closed-end mutual funds with a limited number of shares sold to investors just like an initial public offering. This company sells specific shares to investors on an exchange. How Does a Closed-End Management Company Work? Closed-end manag...

What is a Certificate of Deposit? Certificate of Deposit is a financial document or contract offered by a financial institution normally with a fixed return over a particular period of time. US is the pioneer country that started issuing a Certificate of Deposit back in 1961. This financial security can be exchanged in a secondary market. With a Cer...

What is a Personal Exemption? A personal exemption refers to the amount of money that a single taxpayer can claim as a tax deduction, this deduction is claimed on personal income and federal income tax. The amount an individual can deduct under personal exemption is based on the tax return or taxable income of the individual. As at 2017, the persona...

Should I Use Debt or Equity to Fund my Business?  Both debt and equity funding have significant advantages for the startup venture. The primary advantages (and disadvantages) of each and the are discussed below: When to Finance the Business with Debt  Liability or obligation owned to another person or institution and legally required to be paid by a...

What are the requirements for establishing copyrights? Federal law governs the creation of copyrights. Unlike some other forms of intellectual property, there is no need to file or register the copyright. Copyright protection arises when an expression is an original and creative work that is affixed to a tangible medium.  What is an Original Work?  ...

What is a Correspondent Bank? Correspondent banking is an agreement between two banks whereby one bank (correspondent bank) carries on representative services (such as maintaining deposits, offering settlements, etc.) for another bank (respondent bank). Back to:BANKING, LENDING, & CREDIT INDUSTRY How Does a Correspondent Bank Work? A respondent ...

What is the Humphrey-Hawkins Act? The Humphrey-Hawkins Full Employment Act, more formally known as The Full Employment and Balanced Growth Act, was passed in 1978 to amend the Employment Act of 1946.  The purpose of the act was to give clarifying instructions on the use of government spending, job creation, and controlled monetary policy to create e...

What is a Quiet Title Action? A quiet title action refers to a lawsuit that involves the settlement of the property's title. This can be seen mostly when there is a dispute involving the title. Quiet title action helps in resolving a claim or dispute associated with the title. See also: Abeyance How Does a Quiet Title Action Work? A quiet title acti...