Audit Committee
What is an Audit Committee? An audit committee is a sub-group of a company’s board of directors responsible for the oversight of the financial reporting and disclosure process. To be successful, the audit committee should be aware of the processes and internal controls in the organization. The audit committee must coordinate with the management team,...
Monopolistic Competition
What is Monopolistic Competition? Monopolistic competition is a type of market structure where many companies are present in an industry, and they produce similar but differentiated products. None of the companies enjoy a monopoly, and each company operates independently without regard to the actions of other companies. The market structure is a form of imperfect competition....
Bank Reserves
What are Bank Reserves? Bank reserves are the minimum cash reserves that financial institutions must keep in their vaults at any given time. The minimum cash reserve requirements for financial institutions in each country are set by the central bank of that country. For example, the Federal Reserve is responsible for setting the requirements for...
Examples of Black Swan Events
What are Black Swan Events? In this article, we provide examples of black swan events as they relate to the financial industry. The financial markets are the context in which black swan events are most commonly referred to. In the investing world, a black swan event is an extremely negative event or happening that is...
How the Government Makes Money
How Does the Government Make Money? The primary way that the United States government makes money is through taxation. In Section 8 of the first article of the Constitution, the U.S. Congress is afforded the right to assign and collect taxes. There are several sources of tax revenue. The breakdown of the federal government’s tax...
