Examlex
The benefits of diversification occur as long as the investments in a portfolio are not perfectly positively correlated.
Interest Rate
The amount charged by lenders to borrowers for the use of money, expressed as a percentage of the principal, typically on an annual basis.
Compensating Balance
A minimum account balance that a company agrees to maintain in a bank account, often to qualify for favorable terms on a loan from the bank.
Effective Rate
The interest rate on a loan or investment, adjusted for the compounding period, providing a true reflection of financial costs or returns.
Terms of Sale
The conditions under which a seller is willing to sell a product or service, including price, payment method, and delivery time.
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