Probir Banerjee has Published 469 Answers

Why do Effective Interest Rates yield more than Nominal Interest Rates?

Probir Banerjee

Probir Banerjee

Updated on 12-Aug-2021 13:35:49

The interest rates paid annually by financial organizations on an annual basis are known as Nominal Interest Rates. In such an arrangement, the interest is paid at the end of each year. If compounding is done, that will also be covered under this arrangement in one shot.However, there are arrangements ... Read More

How is Annuity Due different from General Annuity?

Probir Banerjee

Probir Banerjee

Updated on 12-Aug-2021 13:31:51

Annuity Due is a payment of receipt of a fixed amount of money at the beginning of each period for a specified number of periods. It is different from general/ordinary annuity in which the payments are made after the end of each payment cycle. One may find an Annuity Due ... Read More

What is an Account Statement and what are its contents?

Probir Banerjee

Probir Banerjee

Updated on 27-Jul-2021 12:24:03

A statement of account or account statement is a document that enlists transactions between a buyer and a seller. It is a summary of all transactions that take place within a specified period. Business managers use account statements to learn the productivity of their efforts and account statements are a ... Read More

What is the difference between Real Assets and Financial Assets?

Probir Banerjee

Probir Banerjee

Updated on 27-Jul-2021 12:16:30

There are two types of assets associated with a company - the real assets and the financial assets. Real assets are needed to continue operations and financial assets are non-physical assets that can be converted to cash easily. Real assets are called real because they often have a real form ... Read More

What is an Account Number and how is it useful?

Probir Banerjee

Probir Banerjee

Updated on 27-Jul-2021 12:12:38

Account numbers are numbers of accounts. An account number can be composed of letters, numbers or a mix of the two. Account numbers grant access to an individual holding that number. Account numbers are unique numbers such that no two persons can have access to the funds in the account ... Read More

What is an "Account in Trust" or "Trust Account" and how is it managed?

Probir Banerjee

Probir Banerjee

Updated on 27-Jul-2021 12:10:12

A trust account is an account that is managed by a trustee who acts on behalf of a third party. The trustees are selected by the investors and they have to act their best for the best results to the beneficiary. Parents often open trust accounts for their children. The ... Read More

What is an Acceleration Clause and what is its significance?

Probir Banerjee

Probir Banerjee

Updated on 27-Jul-2021 12:07:36

An acceleration clause is a covenant in loan agreements that are often found in property deals. In such clauses, the lender asks the borrower to repay the entire outstanding amount of the loan if certain conditions are not met. These conditions are usually mutually agreed upon during the negotiation phase ... Read More

What is an Absolute Advantage and what are its benefits?

Probir Banerjee

Probir Banerjee

Updated on 27-Jul-2021 12:05:27

If an entity can produce an equal amount of unit outputs using fewer inputs or if it can produce more outputs in a unit amount of time, it is known as the absolute advantage of the entity. For example, the extraction of crude oil is an absolute advantage of Saudi ... Read More

What is an A-B Trust and how does it work?

Probir Banerjee

Probir Banerjee

Updated on 27-Jul-2021 12:03:29

The A-B trust is a trust that has two portions - the A trust and the B trust. It is an estate planning tool that helps married couples avoid heavy taxes. The A-B trust splits into two portions when any one of the spouses dies. In A-B trust, both of ... Read More

What is American Association of Retired Persons (AARP) and why was it formed?

Probir Banerjee

Probir Banerjee

Updated on 27-Jul-2021 12:00:34

Created by Athel Percy Andrus in 1958, the American Association of Retired Persons (AARP) is a nonprofit organization that deals with various issues retired persons face in their lives. Taking care of persons aged above 50, AARP has more than 38 million members. Although it is a nonprofit organization some ... Read More

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