What Is a Financial Asset? A financial asset is a liquid asset that gets its value from a contractual right or ownership claim. Cash, stocks, bonds, mutual funds, and bank deposits are all are examples of financial assets. Unlike land, property, commodities, or other tangible physical assets, financial assets do not necessarily have inherent physical
What Is the Financial CHOICE Act? The term Financial CHOICE Act refers to a bill introduced in the U.S. Congress in 2017. The bill was designed to roll back regulations set by the Dodd-Frank Wall Street Reform and Consumer Protection Act, which was passed in 2010 in response to the 2007-2008 financial crisis. The bill aimed
What Is the Financial Conduct Authority (UK)? As the regulator of the financial services industry in the United Kingdom, the Financial Conduct Authority (FCA) is responsible for the functioning of the U.K.’s financial markets. The goal of the organization is to ensure honest and fair markets for individuals, businesses, and the economy as a whole.
What Is a Financial Crisis? In a financial crisis, asset prices see a steep decline in value, businesses and consumers are unable to pay their debts, and financial institutions experience liquidity shortages. A financial crisis is often associated with a panic or a bank run during which investors sell off assets or withdraw money from savings accounts because they
What Was the Financial Crisis Responsibility Fee? The Financial Crisis Responsibility Fee was a proposed federal tax put forward by President Barack Obama in 2010. The tax would have been imposed on financial firms that received money from the Troubled Asset Relief Program (TARP) in order for the government to recoup every dollar spent on bailing
What Is Financial Economics? Financial economics is a branch of economics that analyzes the use and distribution of resources in markets. Financial decisions must often take into account future events, whether those be related to individual stocks, portfolios, or the market as a whole. Key Takeaways Financial economics analyzes the use and distribution of resources in markets.It employs economic theory
What Is Financial Elder Abuse? Financial elder abuse involves taking advantage of older people and unfairly benefiting from their monetary resources. Family members, business associates, caregivers, and strangers sometimes financially abuse elders by taking advantage of their trust. Tactics involved in financial elder abuse include the unauthorized use of an older person’s assets, gaining power
What Is Financial Engineering? Financial engineering is the use of mathematical techniques to solve financial problems. Financial engineering uses tools and knowledge from the fields of computer science, statistics, economics, and applied mathematics to address current financial issues as well as to devise new and innovative financial products. Financial engineering is sometimes referred to as
What Is Financial Health? Financial health is a term used to describe the state of one’s personal monetary affairs. There are many dimensions to financial health, including the amount of savings you have, how much you’re putting away for retirement, and how much of your income you are spending on fixed or non-discretionary expenses. Key
What Is a Financial Hub? A financial hub, also known as a financial center by the International Monetary Fund (IMF), is a city or region where a large number and a variety of financial services institutions are headquartered. The term hub is a metaphor, comparing the financial services industry to a wheel with a hub
