Amortization refers to the process of spreading out the cost of an asset over its useful life. In financial terms, it is the gradual reduction of a loan or debt through regular payments of...

The Consumer Price Index (CPI) is a measure of the average change in prices over time that consumers pay for a basket of goods and services. It is used by governments, central banks...

A recession is a period of economic decline measured by a decrease in the Gross Domestic Product (GDP) for two or more consecutive quarters. During a recession, businesses...

Inflation is a sustained rise in the general level of prices for goods and services. It is measured as an annual percentage increase. As inflation rises, every dollar you own buys a smaller percentage of...

The Federal Funds Rate is the interest rate at which banks and other depository institutions lend or borrow money to each other overnight on an uncollateralized basis...

Extinguishment of debt refers to the termination or cancellation of a debt obligation. This means that the borrower is no longer obligated to repay the debt, and the lender no longer has a claim on...

Secured debt refers to a type of debt that is backed by collateral, which serves as security for the loan. This means that the lender has a claim on a specific asset or group of...

Unsecured debt refers to a loan or debt that is not backed by collateral. Unlike secured debt, where the borrower provides collateral, such as property or assets, to secure the loan...

Accrued interest refers to the interest that accumulates on a debt instrument such as a bond, loan or savings account, over a specified period of time. It represents the growth in...