What is a progressive tax?

Are you going to have to assume a progressive tax and do not know what this entails? The progressive tax is one of the classifications into which the various taxes that are part of the financing of a State are divided. The problem is that, as with many of the economic terms employees in our … Read more

What is a mortgage?

The concept of mortgage credit refers to the amount of money that a client requests by committing to return it through periodic installments, in addition to a series of associated interests. It is generally backed by a home guarantee, under conditions established in agreement with the financial institution and reflected in a contract. There are … Read more

What is a REPO?

A definition of repo is the financial operation that deals with the sale of securities with the agreement to repurchase them after a period of time at a certain price. It is also known as repurchase agreement, Sale and Repurchase Agreement or Repurchase Agreement. Repo operations are usually done with fixed debt securities, especially with … Read more

What is the opportunity cost?

The definition of opportunity cost is what we give up when making an economic decision, including the benefits that could have been achieved by choosing the alternative option. This term was a creation of Friedrich with Wieser in his Theory of the Social Economy in 1914. The opportunity cost is, therefore, the different resources that … Read more

What is foreign trade?

When commercial operations are carried out between people or companies from different countries, we are dealing with foreign trade. That is, from a point of view macroeconomic, different nations exchange, among themselves, goods and / or services or their price, to cover their internal needs. When we talk about foreign trade, we are usually also … Read more

What is a voucher?

A voucher is a written or digital document that certifies the completion of a transacción económica, delivery of good or service, collection, purchase or expense that has been made between two parties. It can be the exchange of goods or services, a payment, a transfer, a collection, a purchase of goods outside the establishment, etc. … Read more

What is the unit price?

Listing all products with different quantities can be a bit confusing when generating bills. The billing regulations require that the concept of unit price appear, to avoid this type of mess. When we talk about unit price, as the name suggests, we mean the quantity per unit (which has only been counted once) of a … Read more

What is black money?

The name of black money is given to money that is not declared before the competent fiscal or monetary authorities of the country where the transaction has been made. Money laundering is based on the operation of converting said black money into money obtained legally, a procedure used by people who act criminally (drug traffickers, … Read more

What is financial leverage?

The concept of financial leverage refers to the part of the company that is financed with debt. It allows us to access investments of a certain relevance with minor own funds. Financial leverage implies greater risk to the company, since external financing represents a cost for the company that has to be reflected in obtaining … Read more

What is the informal economy?

It is known as informal economy or irregular economy to those economic activities that are carried out avoiding the taxation or administrative controls of a certain country. It represents a high percentage of the world's active population (about 60%) and they are activities as common as undeclared domestic work, freelance work, among others that are … Read more