Business is war.
Banking book accounting is a special way that banks keep track of their money and assets. It’s different from the normal accounting that most businesses use. Banks use banking book accounting for certain things they own, like the loans they give out and some kinds of investments. Accrual Accounting In banking book accounting, banks use…
A bank giro is a way to move money from one bank account to another account. The accounts can even be at different banks. Bank giro is also called a bank transfer. When you do a bank giro, you tell your bank to take money from your account. Then your bank moves that money to…
The Bank for International Settlements, or BIS for short, is a special bank that works with all the central banks around the world. Central banks are the main banks in each country that control things like how much money there is and how banks work. You can think of central banks as the “boss banks”…
Bancassurance is when a bank also sells insurance. Banks and insurance companies team up so the bank can offer both banking services and insurance under one roof. This is popular in Europe. How Bancassurance Works Banks want to make money in lots of ways. Insurance companies want more people to buy insurance. So they decided…
A balancing charge happens when a company sells something it owns for more money than what the company says it’s worth in the books. This thing the company sells is called an asset. An asset is anything a company owns that has value, like equipment, vehicles, buildings, or land. Why Balancing Charges Happen The reason…
The balanced budget multiplier is a number. It tells us how much the total amount of stuff a country makes and buys changes when the government spends more money. But there is a catch! The government also has to collect the same amount of extra money it spends. It collects this extra money by making…
A Balance Sheet Hedge is a type of hedge transaction. Companies use it to protect themselves against Translation Risk, which occurs when they operate in countries that use other currencies. Why Translation Risk Matters Imagine a U.S. company that does business in Europe. The European part of the business uses euros, but the U.S. company’s…
A balance sheet stands as one of the most important documents in business accounting. This financial statement captures the complete picture of what a company owns and owes at a specific moment in time. Understanding balance sheets helps anyone grasp the true financial condition of any business. What Makes Up a Balance Sheet The balance…
The balance of trade is how much a country sells to other countries (exports) compared to how much it buys from other countries (imports). It looks at both visible things you can see and touch, like cars or clothes, and invisible things you can’t, like services or tourism. The balance of trade is a big…
The Balance of Payments is a special account that countries use. It shows the money coming in and going out of the country. This includes things the country buys and sells to other countries. It also includes money people send in and out. There are three main parts to the Balance of Payments: The Current…
