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Q: please define a "factors of production"

Category: glossary , Asked by: Frankie L. From Ireland

A: An economic term to describe the inputs that are used in the production of goods or services in the attempt to make an economic profit. The factors of production include land, labor, capital and entrepreneurship. In essence, land, labor, capital and entrepreneurship encompass all of the inputs needed to produce a good or service. Land represents all natural resources, such as timber and gold, used in the production of a good. Labor is all of the work that laborers and workers perform at all levels of an organization, except for the entrepreneur. The entrepreneur is the individual who takes an idea and attempts to make an economic profit from it by combining all other factors of production. The entrepreneur also takes on all of the risks and rewards of the business. The capital is all of the tools and machinery used to produce a good or service. Visit FX Universal

  1. Q: do you know what the "rate anticipation swap" is?

    Category: glossary , Asked by: F. A. From Walsall, United Kingdom

    A: a "rate anticipation swap " is A type of swap in which bonds are swapped according to their current duration and predicted interest rate movements. Investors will usually participate in these swaps to maximize profits from favorable interest rate movements and minimize losses from unfavorable movements. For example, bonds with higher duration generally exhibit higher price fluctuations when an interest rate changes. If interest rates are expected to decline, investors would swap for bonds with a higher duration in order to maximize potential gains from the price movement.

  2. Q: do you know what "two-way price" is?

    Category: glossary , Asked by: B. Dawson from Germany

    A: the "two-way price " is When both a bid and offer rate is quoted for a FX transaction.

  3. Q: please define the "Fed funds"

    Category: glossary , Asked by: Houston I. From Belgium

    A: a "Fed funds " is Funds deposited by commercial banks at the Federal Reserve banks. To allow those organisations temporarily short of reserve requirements to borrow from those that have excess reserves. The rate of interest on fed funds, influenced though not set by the Fe

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