Farrand

How Companies Use Held-To-Maturity (HTM) Securities for Interest Income.

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Held-to-maturity (HTM) securities are debt securities that a company has the intent and ability to hold until they mature. These securities are typically issued by the federal government, state and local governments, and government-sponsored enterprises. Companies use HTM securities for interest income because they offer a predictable and secure stream of interest payments. The interest … Read more

What Are Government Purchases?

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Government purchases are spending on goods and services by the federal government. It includes spending on national defense, public safety, and public health. It also includes spending on social welfare programs, such as Social Security and Medicare. Government purchases also include spending on infrastructure, such as roads, bridges, and schools. What are the two types … Read more