What Is Agency by Necessity? Agency by necessity is a type of legal relationship in which one party can make essential decisions for another party until legally recognized agents like someone with power of attorney or guardianship are put in place. The courts recognize agency by necessity during an emergency or urgent situation under which
What Is Agency Cost of Debt? The agency cost of debt is the conflict of interest between shareholders and debtholders or creditors of a firm based on the decisions made by management. The agency costs of debt would specifically be the actions taken by debtholders in restricting what management can do with their capital if they
What Are Agency Costs? An agency cost is a type of internal company expense, which comes from the actions of an agent acting on behalf of a principal. Agency costs typically arise in the wake of core inefficiencies, dissatisfactions, and disruptions, such as conflicts of interest between shareholders and management. The payment of the agency
What Is Agency MBS Purchase? Agency MBS purchase is the purchase of mortgage-backed securities (MBS) issued by government-sponsored enterprises (GSE) such as Fannie Mae, Freddie Mac, and Ginnie Mae, the latter of which is a wholly-owned government corporation. The term is most commonly used in reference to the U.S. Federal Reserve’s (Fed) $1.25 trillion program
What Is an Agent? An agent, in legal terminology, is a person who has been legally empowered to act on behalf of another person or an entity. An agent may be employed to represent a client in negotiations and other dealings with third parties. The agent may be given decision-making authority. Two common types of
What Is an Agent Bank? An agent bank is a bank that performs services in some capacity on behalf of an entity. An agent bank, also known as agency bank, can offer a wide variety of services for businesses looking to expand internationally. These banks generally act on behalf of another bank or group of
What Are Aggregate Hours? Aggregate hours is a statistic that is gathered by the U.S. Department of Labor (DOL). Aggregate hours represents the sum of hours worked by all employed people, either full- or part-time, during the course of a year. Aggregate hours can also refer to the total hours worked by one sector or group of
What is Aggregate Deductible? An aggregate deductible is the limit deductible a policyholder would be required to pay on claims during a given period of time. Aggregate deductibles are most likely to be features of product liability policies or policies that might result in a large number of claims during a certain time period. How an Aggregate
What Is Aggregate Demand? Aggregate demand is a measurement of the total amount of demand for all finished goods and services produced in an economy. Aggregate demand is commonly expressed as the total amount of money exchanged for those goods and services at a specific price level and point in time. Key Takeaways Aggregate demand
What Is Aggregate Excess Insurance? Aggregate excess insurance limits the amount that a policyholder has to pay out over a specific time period. Also called stop-loss insurance, it is designed to protect policyholders who experience an unusually high level of claims that are considered unexpected. Aggregate excess insurance provides payment for total losses that occur over a
