What Are Free Reserves? Free reserves are the monetary reserves that a bank holds in excess of required reserves, minus reserves borrowed from the central bank. Key Takeaways Free reserves are the reserves a bank holds in excess of required reserves, minus reserves borrowed from the central bank. More free reserves can mean more available bank
What Is Freeriding? The term freeriding refers to the practice of buying shares or other securities in a cash account and then selling them before the purchase has settled. When a trader freerides, they may pay for the shares using money from the proceeds of the sale instead of cash. Freeriding is a violation of
What Is a Free Trade Agreement (FTA)? A free trade agreement is a pact between two or more nations to reduce barriers to imports and exports among them. Under a free trade policy, goods and services can be bought and sold across international borders with little or no government tariffs, quotas, subsidies, or prohibitions to
What Are Freight Derivatives? Freight derivatives are financial instruments whose value is derived from the future levels of freight rates, like dry bulk carrying rates and oil tanker rates. Freight derivatives are often used by end-users (ship owners and grain-houses) and by suppliers (integrated oil companies and international trading corporations) to mitigate risk and hedge against
What Is a Frequency Distribution? A frequency distribution is a representation, either in a graphical or tabular format, that displays the number of observations within a given interval. The frequency is how often a value occurs in an interval while the distribution is the pattern of frequency of the variable. The interval size depends on
What Is the Frequency-Severity Method? Frequency-severity method is an actuarial method for determining the expected number of claims that an insurer will receive during a given time period and how much the average claim will cost. Frequency-severity method uses historical data to estimate the average number of claims and the average cost of each claim. The
What is Freudian Motivation Theory? Freudian motivation theory posits that unconscious psychological forces, such as hidden desires and motives, shape an individual’s behavior, like their purchasing patterns. This theory was developed by Sigmund Freud who, in addition to being a medical doctor, is synonymous with the field of psychoanalysis. Key Takeaways Freudian motivation theory posits
What Is Frictional Unemployment? Frictional unemployment occurs with voluntary employment transitions within an economy. As workers choose to move from one job to another and new workers enter the workforce for the first time, a temporary period of unemployment is created. Frictional unemployment can be evident in a growing, stable economy and is regarded as
What Is Friction Cost? Friction cost is the total direct and indirect costs associated with the execution of a financial transaction. The friction cost comprehensively takes into consideration all of the costs associated with a transaction. Calculating the friction cost provides an investor with a full range of expected costs they can expect to incur.
Friedrich Engels was a German philosopher, writer, and social scientist during the 19th century. Known for his collaboration with Karl Marx, Friedrich Engels helped define modern communism. Friedrich Engels is the co-author of The Communist Manifesto, an 1848 pamphlet regarded as one of the world’s most influential political documents. Engels died on Aug. 5, 1895
