Author: Saroj Kumari
What are Economic Laws? Economic laws are a set of scientific rules that explain how economic phenomena occur. These laws govern aspects such as supply, demand, and exchange rate, among others. Key points They govern aspects such as production, consumption, and trade. They are scientific rules that explain how economic phenomena occur. They are fulfilled independently of the will of individuals. Characteristics of economic laws Now that we know what an economic law is, let’s look at its main characteristics as a diagram to better consolidate this important concept: They are scientific rules that show how economic phenomena occur. These…
M2 is a monetary aggregate that includes M1 (coins and banknotes in the hands of the public and bank reserves ) and to this is added short-term deposits (up to two years), savings accounts, current accounts, and daily repurchase agreements that people have in the financial system. Generally, these deposits have a maturity of no more than one year. This aggregate is accounted for differently by country and has its extension to the monetary aggregates M3 and M4. Although it is true that it is the one most used by the US Federal Reserve, this definition of money does not…
What is a junk bond? High-yield bonds, or junk bonds, are debt bonds with a low credit quality. They have a non-investment grade (not recommended for investment) according to rating agencies. They are also known by their English name, high yield bond. Key points These are debt securities issued by entities with low credit ratings. Their appeal lies in the superior yield they offer, offsetting the higher risk of default. This type of investment requires careful analysis and understanding of the risk profile before proceeding. Junk bonds: A simple explanation In other words, high-yield bonds are issued by entities or…
What is volatility? Volatility is a financial term that refers to the variation in the price of an asset over time. An asset is considered volatile when its price changes rapidly and significantly in a short period of time. Volatility: A Simple Explanation Put another way, volatility indicates how much and how quickly an asset’s prices change. It is commonly used in finance to assess investment risk. An asset with high volatility has prices that fluctuate widely and rapidly, which can mean greater opportunities for profit, but also greater risks of loss. On the other hand, assets with low volatility are more…
In the framework of International Lemon Day, it is important to highlight the multiple benefits that this citrus can offer you Do you like adding lemon to everything? Every year, September 30th is International Lemon Day, a tribute to this citrus fruit that has become a special element in Mexican gastronomy and natural medicine around the world. Beyond its versatility in the kitchen, lemon offers numerous health benefits, backed by science. Today, we present you five of the main positive effects of consuming lemon in your daily diet. What are the benefits of consuming lemon? 1. Strengthens the immune system Lemon is an excellent source of vitamin C, a key nutrient…