Recurring Billing

Recurring billing happens when a merchant automatically charges a customer for goods or services on a prearranged schedule. Recurring billing requires the merchant to get the customer’s information and permission. The vendor will then automatically make recurring charges to the customer’s account with no further permissions needed.Any good or service that a customer subscribes to with regularly scheduled payments might be a good candidate for recurring billing. Examples include cable bills, cell phone bills, gym membership fees, utility bills, and magazine subscriptions. Recurring billing may also be referred to as automatic bill payment.

Revolving Loan Facility

A revolving loan facility is a form of credit issued by a financial institution that provides the borrower with the ability to draw down or withdraw, repay, and withdraw again. A revolving loan is considered a flexible financing tool due to its repayment and re-borrowing accommodations. It is not considered a term loan because, during an allotted period of time, the facility allows the borrower to repay the loan or take it out again. In contrast, a term loan provides a borrower with funds followed by a fixed payment schedule.

Demand Curve

The demand curve is a graphical representation showing the quantity of a good or service that consumers are willing to purchase at different price levels. Typically, the demand curve slopes downwards to the right, indicating that the lower the price, the higher the quantity purchased by consumers.

Demand Theory

Demand theory is an important concept in economics that studies consumers' willingness to purchase goods and services at different price levels. It explores how factors such as price, income, and preferences affect the quantity demanded and reveals the shape and movement of the demand curve. Demand theory helps understand market behavior and formulate economic policies.

Law Of Demand

The law of demand is one of the most fundamental concepts in economics. It works with the law of supply to explain how market economies allocate resources and determine the prices of goods and services that we observe in everyday transactions.The law of demand states that the quantity purchased varies inversely with price. In other words, the higher the price, the lower the quantity demanded. This occurs because of diminishing marginal utility. That is, consumers use the first units of an economic good they purchase to serve their most urgent needs first, then they use each additional unit of the good to serve successively lower-valued ends.

Demand Elasticity

Price elasticity of demand is a measurement of the change in the consumption of a product in relation to a change in its price. Expressed mathematically, it is:Economists use price elasticity to understand how supply and demand for a product change when its price changes. Like demand, supply also has an elasticity, known as price elasticity of supply. Price elasticity of supply refers to the relationship between change in supply and change in price. It’s calculated by dividing the percentage change in quantity supplied by the percentage change in price. Together, the two elasticities combine to determine what goods are produced at what prices.

Demand Shock

A demand shock is a sudden unexpected event that dramatically increases or decreases demand for a product or service, usually temporarily. A positive demand shock is a sudden increase in demand, while a negative demand shock is a decrease in demand. Either shock will have an effect on the prices of the product or service.A demand shock may be contrasted with a supply shock, which is a sudden change in the supply of a product or service that causes an observable economic effect.Supply and demand shocks are examples of economic shocks.

Amended Return

An amended return is a form filed in order to make corrections to a tax return from a previous year. An amended return can correct errors and claim a more advantageous tax status, such as a refund. For example, one might choose to file an amended return in instances of misreported earnings or tax credits. Mathematical errors, however, do not require amendments because the IRS automatically corrects for such errors when processing the tax return.

Modified Duration

Modified duration is an indicator that measures the sensitivity of a bond's price to changes in interest rates. It represents the percentage change in the bond's price for a 1% change in interest rates. The higher the modified duration, the more sensitive the bond's price is to changes in interest rates.

Trimmed Mean

A trimmed mean (similar to an adjusted mean) is a method of averaging that removes a small designated percentage of the largest and smallest values before calculating the mean. After removing the specified outlier observations, the trimmed mean is found using a standard arithmetic averaging formula. The use of a trimmed mean helps eliminate the influence of outliers or data points on the tails that may unfairly affect the traditional or arithmetic mean.Trimmed means are used in reporting economic data in order to smooth the results and paint a more realistic picture.

Dormant Account

A dormant account is a customer's account at a bank or other financial institution that has seen no activity, with the possible exception of interest deposits, for a long period of time. The owner may have forgotten about the account, moved out of town without leaving a forwarding address, or died.A dormant account with a very small balance may simply evaporate, reaching a zero balance due to monthly bank fees that exceed any interest paid. If not, the balance is turned over to the state, which will return it to the rightful owner upon request.Financial institutions are required to transfer the money held in dormant accounts to the state's treasury after the accounts have been dormant for a certain period of time. The amount of time varies by state.

Exercise

Exercise means to put into effect the right to buy or sell the underlying financial instrument specified in an options contract. In options trading, the holder of an option has the right, but not the obligation, to buy or sell the option's underlying security at a specified price on or before a specified date in the future.