What Is Financial Innovation? Financial innovation is the process of creating new financial products, services, or processes. Financial innovation has come via advances in financial instruments, technology, and payment systems. Digital technology has helped to transform the financial services industry, changing how we save, borrow, invest, and pay for goods. While large banks continue to
What Is the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA)? The Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) is a law that revised the federal government agency structure and rules governing the U.S. savings and loan banking system and the real estate appraisal industry, passed in 1989 in response to the savings and loan
What Is the Financial Institutions Regulatory Act (FIRA)? The Financial Institutions Regulatory and Interest Rate Control Act (FIRA) is a United States Federal law enacted in 1978 pertaining to depository financial institutions. The act made five major changes to these institutions and created the Central Liquidity Facility and the Federal Financial Institutions Examination Council (FFIEC).
What Is a Financial Intermediary? A financial intermediary is an entity that acts as the middleman between two parties in a financial transaction, such as a commercial bank, investment bank, mutual fund, or pension fund. Financial intermediaries offer a number of benefits to the average consumer, including safety, liquidity, and economies of scale involved in
What Is Financial Literacy? Financial literacy is the ability to understand and effectively use various financial skills, including personal financial management, budgeting, and investing. The meaning of financial literacy is the foundation of your relationship with money, and it is a lifelong journey of learning. The earlier you start, the better off you will be
What Are Financial Markets? Financial markets refer broadly to any marketplace where the trading of securities occurs, including the stock market, bond market, forex market, and derivatives market, among others. Financial markets are vital to the smooth operation of capitalist economies. Key Takeaways Financial markets refer broadly to any marketplace where the trading of securities
What Is an IRS Field Audit? A field audit is a comprehensive tax audit conducted by the Internal Revenue Service (IRS) at either the taxpayer’s home, place of business or accountant’s office, so they can examine your individual or business financial records to ensure you filed your tax return accurately. Key Takeaways An audit is
What Is First In, First Out (FIFO)? First In, First Out, commonly known as FIFO, is an asset-management and valuation method in which assets produced or acquired first are sold, used, or disposed of first. For tax purposes, FIFO assumes that assets with the oldest costs are included in the income statement’s cost of goods
What Is a Foreign Institutional Investor (FII)? A foreign institutional investor (FII) is an investor or investment fund investing in a country outside of the one in which it is registered or headquartered. The term foreign institutional investor is probably most commonly used in India, where it refers to outside entities investing in the nation’s
What Is File and Suspend? File and suspend was a Social Security claiming strategy that allowed married couples of full retirement age to receive spousal benefits and delay retirement credits at the same time. It was ended as of May 1, 2016, by the Bipartisan Budget Act of 2015, signed on Nov. 2, 2015, by
