The more surplus and reserves the company holds and the better its investments and actuarial risks are managed, the stronger the company is considered to be by the rating services. Annuities are obligations of insurance companies, not banks. Annuities are therefore not covered by FDIC. There is...
Companies create capital reserves through a variety of transactions, including selling fixed assets, increasing the valuation of assets to reflect their current market value, issuing stock more than par value (share premium), profits on the redemption of debentures, and the reissue of forfeited shares...
When a Surplus Is a Negative Indicator Current account surpluses are generally considered a positive sign in an economy. However, in some cases, they are also negative indicators. Japan's current account surplus is as much due to low domestic demand as it is to its export competitiveness.3 T...
Understand what trade deficit means and know the trade surplus definition. Learn the trade balance formula with the help of balance of trade examples. Related to this Question In terms of domestic output versus domestic buying of goods and services, what does it mean when ...
nb: It is possible by adding energy in a heat pump that does work using another energy, but that’s another story, the earth generates no enrgy and hasno agency in this proces, controlled entirely by the need for an energy balance in space, at whatever enrgy level that is and hence at...
What does working capital mean? Working capital is the difference between a business's current assets (e.g., cash, accounts receivable, and inventories) and current liabilities (e.g., accounts payable and short-term debt). It’s an essential financial metric that helps ensure a company has ...
and every depression has been preceded by significant debt reduction. Further, every budget surplus has been followed, usually sooner rather than later, by renewed deficits. However, correlation—even where perfect—never proves causation. Is there any reason to suspect that government surpluses are ...
as well as from the confusion prevalent among many geoscientists not versed in resource economics as to what reserves and resources really mean. In this context, I shall examine what the reserve-to-production ratio (R/P-ratio)—frequently misunderstood as lifetime—really means and what R/P-ra...
Sir, the public routinely get involved in political discussions both online and offline on the effectiveness or ineffectiveness of policies, the appropriateness of Executive action, the lack of information on matters on public interest such as the size of our reserves, amongst many others. By their...
by using the IMF as a club to enact far reaching reforms on nations seeking aid. The lesson learned – never, ever run a current account deficit. Accumulating massive reserves is the absolute only way to guarantee you can always tell the nice men from the IMF and the US Treasury to get...