Kirsti A straight life annuity is a type of annuity that provides regular payments to the annuitant for their lifetime. This type of annuity is often used as a retirement income stream, as it can provide a predictable and steady source of income throughout retirement. When the annuitant dies, the annuity payments stop and the annuity … Read more
The term “transfer price” refers to the price charged for goods or services transferred between two related parties. The transfer price is used to allocate costs and profits between the two entities, and can be used to create artificial profits or losses. Transfer prices can be used to manipulate financial statements and tax liability. What … Read more
Gharar is a term used in Islamic finance to refer to a type of risk that is considered to be unacceptable. Gharar arises when there is uncertainty about an event or transaction, which can lead to a situation where one party is unable to fulfill their obligations. This type of risk is often associated with … Read more
The Pros and Cons of a Currency Peg. A currency peg is a system where a country’s currency is fixed at a specific rate to another country’s currency. The pros of a currency peg are that it can stabilize a country’s currency, help keep inflation low, and attract foreign investment. The cons of a currency … Read more
