A Charge-Off is a financial term used to describe a situation where a creditor writes off an outstanding debt as uncollectible. In simpler terms, it means that the creditor has given up on...

Capital gain refers to the profit that an individual or entity realizes when they sell an asset for a price that is higher than the price they initially paid for it. In other words, it...

Cash flow is the movement of money in and out of a business or individual's accounts over a given period. It measures the amount of money that flows into and out of a business, indicating...

In financial terms, the principal refers to the initial amount of money that is borrowed or invested, upon which interest is calculated or earned.  It is the original amount of money involved in a...

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...