A Social Impact Bond (SIB) is a type of financing that allows private investors to fund social programs in exchange for a return on their investment that is tied to the success of the program. SIBs are also sometimes referred to as Pay for Success Bonds or Social Benefit Bonds. SIBs are a relatively new … Read more
The Standard of Value is the benchmark against which the Department of Finance (DoF) assesses the value for money of government expenditure. It is used to inform government decision-making on the best use of public resources. The Standard of Value is also known as the cost-benefit analysis. Which of the following is the main objective … Read more
Hire Purchase Agreements: What They Are, How They Work, Pros and Cons What is hire purchase in business? The hire purchase system is a way for businesses to acquire goods by paying for them over time. Under this system, businesses make an initial down payment, followed by periodic payments, until the full purchase price is … Read more
Deflation is a decrease in the general price level of goods and services. Deflation occurs when the inflation rate falls below 0% (a negative inflation rate). What are the types of deflation? There are four types of deflation: 1. Cost-Push Deflation: This occurs when the cost of production rises, leading to higher prices for goods … Read more
The Financial Stability Plan (FSP) is a set of policy measures designed to restore confidence in the financial system and support the flow of credit to the economy. The FSP was announced by the government on 12 October 2008 in response to the global financial crisis. The main components of the FSP are: 1. A … Read more
The Mint Definition refers to the specific characteristics that define a particular type of coin. This includes factors such as the metal content, weight, diameter, and thickness of the coin. The Mint Definition is important because it provides a clear and concise description of what a coin should look like. This allows for easy identification … Read more
A dirty price is the price of a security that includes all interest payments that have accrued since the last coupon payment. The dirty price is the price that is quoted when buying or selling a bond. The clean price is the dirty price minus the accrued interest. What is the bond yield curve? The … Read more
A bond that is issued by a corporation in order to raise capital for working capital or other purposes. The issuer often uses the proceeds from the sale of the bonds to pay off existing debt. Adjustment bonds are typically issued with a face value of $1,000 and have a maturity of five to ten … Read more
A debenture redemption reserve is a fund created by a company out of its profits to redeem its debentures on maturity. The size of the reserve is generally equal to the face value of the debentures to be redeemed. The purpose of the reserve is to provide the company with a source of funds to … Read more
The Best-Interest Contract Exemption (BICE) is a regulatory exemption that allows financial institutions to receive certain types of compensation when providing investment advice to retail customers, provided that the institution adheres to certain conditions designed to protect the customer’s best interests. The conditions imposed by the BICE include the following: The financial institution must enter … Read more
