What is a Negative Interest Rate Policy (NIRP)? A negative interest rate policy, or NIRP, is an uncommonly used monetary policy tool where a central bank will set target interest rates at a negative value. The negative interest rates break through the lower bound of zero percent, which results in a scenario where saving costs…
What is a Negative Interest Rate Environment? A negative interest rate environment occurs when the central bank of a specific economic zone sets the nominal interest rate to zero. Such a move, in effect, makes banks charge money to deposit holders (individuals and businesses) to hold their funds. The charge occurs instead of the regular…
What is a Multilateral Trading Facility (MTF)? A multilateral trading facility (MTF) is a financial trading venue that serves as an alternative to a traditional trading exchange, such as the New York Stock Exchange (NYSE). MTFs connect multiple buyers and sellers through computerized systems in accordance with rules prescribed by Europe’s Markets in Financial Instruments…
What is Net National Product (NNP)? Net national product (NNP) is a term that is often used to represent the difference between gross national product and depreciation. In numerical terms, the NNP is the total market value of the goods and services produced by a nation during a specified period (generally a year) with depreciation…
What is Freight On Board (FOB)? Freight on Board (FOB), also referred to as Free on Board, is an international commercial law term published by the International Chamber of Commerce (ICC). It indicates the point at which the costs and risks of shipped goods shift from the seller to the buyer. In modern domestic shipping,…
What are Knowledge Workers? The term “knowledge worker” was first coined by Peter Drucker in his book, The Landmarks of Tomorrow (1959). Drucker defined knowledge workers as high-level workers who apply theoretical and analytical knowledge, acquired through formal training, to develop products and services. He noted that knowledge workers would be the most valuable assets…
What is Lunch and Learn? Lunch and learn programs are sometimes referred to as learn-at-lunch or “brown-bag” sessions due to the brown bags used to carry lunches. Most companies today use lunch and learn programs as an alternative to formal training and seminars. The programs become integral parts of the organizational culture and, hopefully, an…
What is the US Bankruptcy Code? The US Constitution gives the US Congress the authority to enact laws on the subject of bankruptcy for the country. In exercising this authority, legislators have passed several laws on the subject of bankruptcy, the most recent being the Bankruptcy Reform Act of 1978, which largely governs the country’s…
What is an Equipment Lease Agreement? An equipment lease agreement is a contractual agreement where the lessor, who is the owner of the equipment, allows the lessee to use the equipment for a specified period in exchange for periodic payments. The subject of the lease may be vehicles, factory machines, or any other equipment. Once…
What is Social Security? Social Security is a US federal government program that provides social insurance and benefits to people with inadequate or no income, or who are retired from the workforce. The original Social Security Act was signed into law in 1935 by President Franklin D. Roosevelt. The law has undergone several modifications over…
