Klarrisa When a borrower takes out a loan, the interest rate they pay is typically determined by the market conditions at the time of borrowing. However, some loans come with an interest rate floor, which is the minimum interest rate the borrower will pay over the life of the loan. There are a few different ways … Read more
An emerging market economy is a country that is in the process of industrialization and economic growth. Emerging markets are typically characterized by high levels of poverty, income inequality, and economic instability. The term “emerging market economy” is often used interchangeably with “developing economy.” However, there is a subtle difference between the two terms. A … Read more
A payable-through-draft (PTD) is a demand deposit account that can be used to make payments to third parties. The account holder gives the bank permission to make payments on their behalf, and the bank debits the account for the amount of the payment plus any applicable fees. PTDs are similar to checks, but they are … Read more
What Is International Finance, and Why Is It Important? WHAT IS features of international finance? There are a few key features of international finance that are worth mentioning. First, international finance is concerned with the financial decisions that multinational corporations (MNCs) make. This includes things like capital budgeting, foreign exchange risk management, and financing decisions. … Read more
