Banks and financial institutions use the money market to borrow and lend large sums of money. The term “money market” doesn’t imply that there is a formal market. Instead, it refers to a group of brokers, dealers, banks, and other market participants who transact with…

Specialization involves concentrating your effort in a particular direction. Companies usually specialize in producing certain goods. They develop expertise and skills that help them to manufacture these goods in the most efficient manner. Countries could specialize, too. Many companies in Japan and Germany possess a…

Companies hold trading securities with the intention of selling them to make a profit. In the balance sheet, these are classified as a current asset.
What does trading securities mean?
Trading securities include both debt securities as well as equities. These are usually bought and sold on…

Marginal benefit is the advantage or enjoyment that is obtained by consuming one additional unit of a product. This benefit typically decreases as more units are consumed.
What does marginal benefit mean?
The utility of a good or a service is based on the benefit that the…

The change in output that takes place when one additional unit of capital is deployed is referred to as the marginal product of capital. This change is measured by keeping all the other factors of production constant.
What does marginal product of capital mean?
It is useful…