TIER 2 CAPITAL
One of the two categories a bank’s capital is split. A supplementary bank capital, it includes hybrid instruments, revaluation reserves, undisclosed reserves, and subordinated term debt. Its components can be divided into two levels: upper level and lower level. Although Tier 2 Capital is included in computing the bank’s reserve requirements, it is considered less reliable than Tier 1 Capital.
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Mature Economy
An economic situation where the birth rate is stable or lower than mortality rate, as well as the pace of economic growth has slowed down. It is ch ...
Blackberry Addiction
Colloquial term for overreliance or overuse of Blackberry. The smartphone is manufactured by Research in Motion. It is a prevailing condition for s ...
Completed Contract Method - CCM
Accounting method allowing a taxpayer or business to defer reporting of income and expenses until the contract has been completed. Frequently, this ...
Choice Market
Market in which the spread between the bid and ask prices for a particular financial instrument is zero. Meaning the instrument can be purchased fo ...
Rational Pricing
A theory that states the prices that reflect a security’s fundamental value and the absence of arbitrage opportunities.
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