Monetary Policy
What is Monetary Policy? Monetary policy is an economic policy that manages the size and growth rate of the money supply in an economy. It is a powerful tool to regulate macroeconomic variables such as inflation and unemployment. These policies are implemented through different tools, including the adjustment of the interest rates, purchase or sale...
Foreign Direct Investment (FDI)
What is Foreign Direct Investment (FDI)? Foreign direct investment (FDI) is an investment from a party in one country into a business or corporation in another country with the intention of establishing a lasting interest. Lasting interest differentiates FDI from foreign portfolio investments, where investors passively hold securities from a foreign country. A foreign direct investment...
Fannie Mae
What is Fannie Mae? The Federal National Mortgage Association, typically known as Fannie Mae, is a United States government-sponsored entity that was established to expand the secondary mortgage market by making mortgages available to low and middle-income borrowers. It does not provide mortgages to borrowers, but purchases and guarantees mortgages through the secondary mortgage market....
Commodity Valuation
What is Commodity Valuation? Commodity valuation is the process of deriving the intrinsic value of a commodity under optimal market conditions. In a perfectly competitive free market, the price of a commodity reflects the intrinsic value of that good. Commodity valuation follows the classical economic principle of arriving at a price by studying the intersection...
Financial Economics
What is Financial Economics? Financial economics is a branch of economics that deals with various financial markets, taking into consideration how resources are being used. Its particular attention to monetary activities sets it apart from the other branches. In financial economics, important aspects that occur in forex and stock markets are analyzed, as well as...
