Indemnity – Indemnity refers to an exemption from the liability of potential damages. The concept could also refer to a scenario in which a particular party agrees to pay a secondary party for the losses caused by the latter.
Capital Adequacy Ratio – Capital Adequacy Ratio is the ratio of a bank’s capital to its total assets required by regulators to be above a minimum level, so that there is little risk of the bank going bust. The ratio determines how high this minimum level is and may vary according to how risky a…
Currency Peg – A Currency Peg is when the Government announces that the exchange rate of its currency is fixed against another currency or currencies.
An Arbitrage is a process of simultaneously selling an asset in two different markets with the intention of profiting on the prevalent price difference. Also read: #Kredxionary – Bed And Breakfast
A Bed and Breakfast is an operation on the London Stock Exchange in which a shareholder sells a holding the previous evening and makes an agreement with the broker to buy back the same holding when the market re-opens next.
A Money Market is a sub-section of the fixed income market such as T-Bills, CDs, Commercial Paper, etc. They are also called short-term debt securities and have tenures lesser than 1 year.