What is Performance Index Paper (PIP)? Performance Index Paper (PIP) is short-term commercial paper where the interest rate is denominated and paid in a currency whose value varies with the value of another currency. Key Takeaways Performance Index Paper (PIP) is short-term commercial paper where the interest rate is denominated and paid in a currency
What Is Performance Management? Performance management is a corporate management tool that helps managers monitor and evaluate employees’ work. Performance management’s goal is to create an environment where people can perform to the best of their abilities and produce the highest-quality work most efficiently and effectively. Key Takeaways Performance management tools help people to perform
What Is Period Certain? Period certain is an annuity option that allows the customer to choose when and how long to receive payments, which beneficiaries can later receive. This is unlike the more conventional life, lifetime or pure life annuity option, in which the annuitant receives an income payment for the rest of their life
What Is a Periodic Interest Rate? A periodic interest rate is a rate that can be charged on a loan, or realized on an investment over a specific period of time. Lenders typically quote interest rates on an annual basis, but the interest compounds more frequently than annually in most cases. The periodic interest rate
What Is a Periodic Payment Plan? The term periodic payment plan refers to an investment plan where an individual makes small payments over time in order to invest in mutual fund shares. These plans involve making contributions of a small, fixed sum over a period of time. People who invest in periodic payment plans actually
What Is a Periodic Payment Plan Certificate? A periodic payment plan certificate is proof of an ownership interest in a mutual fund that allows its investors to build up a stake by making small regular payments. The investment structure is known as a periodic payment plan. Periodic payment plans are sometimes known as contractual plans
What Is a Period Of Indemnity? The period of indemnity is the length of time for which benefits are payable under an insurance policy. It is also used to denote the time period for which indemnity or compensation is payable under a business interruption policy. The period of indemnity is usually the most critical component
What Is the Permanent Income Hypothesis? The permanent income hypothesis is a theory of consumer spending stating that people will spend money at a level consistent with their expected long-term average income. The level of expected long-term income then becomes thought of as the level of “permanent” income that can be safely spent. A worker will save only if their current income is
What Is Permanent Life Insurance? Permanent life insurance is an umbrella term for life insurance policies that do not expire. The two primary types of permanent life insurance are whole life and universal life, and most permanent life insurance combines a death benefit with a savings portion. Whole life insurance offers coverage for the full
What Is a Permanent Loan? A permanent loan is a type of loan with an unusually long term. The term can have different meanings, however, depending on the context in which it is used. Despite its name, permanent loans are generally not permanent, although they may last for a long time. Key Takeaways Permanent loans
