What is a Promissory Note? A promissory note is a document or statement containing a promise from one party to another. This note states that the note’s issuer will pay a predefined sum of money to the noteholder. Usually, it also includes the maturity date or the date on which …

When it comes to financial institutions such as banks, insurance companies, and securities firms, the model risk management framework is a way of assessing risks associated with the model that an organization uses. The main job of any financial institution is to provide services or products to their customers. This …

The matching principle in accounting requires accountants to match the expenses with their related revenues. Sometimes, however, accountants may need to estimate figures. Once they establish the actual value, they must adjust their accounts to reflect the actual transaction or position. A term related to similar adjustments is ‘true up’. …

The front offices in banks are home to many different people. This includes the customer service representatives, accountants, and loan officers. In a nutshell, they are responsible for helping customers with their various banking needs. The front office is responsible for dealing with important clients, making recommendations and presentations regarding …

Money markets are financial markets where parties transact in short-term debt instruments. Usually, money markets involve a large volume of transactions between sellers and buyers. These usually include institutions and traders. Similarly, several types of debt instruments are available on money markets. One of these includes commercial papers. What is …

Not all risks are created equal. The risk of losing your job is much more serious than the risk of just being embarrassed when you show up to work in a mismatched outfit! Considering that, it’s no surprise that middle office workers spend their days surrounded by very different types …

Econometrics is a field in economics that uses statistical and mathematical models to analyze economic data. This field is crucial in helping economists quantify economic models. By doing so, they can test existing economic models or build new ones. There are several tools that economists use within econometrics. These include …

A back office in a bank simply refers to the section where all the work is done in connection to finance. The back office is responsible for the accounting and financial processing of both customers and staff. A bank has many different jobs ranging from service, administration, and operations to …

What is Econometrics? Econometrics is a field in economics that helps economists quantify economic theories. Historically, most economists only relied on economic theories and hypotheses. However, some of these theories were unproven due to the lack of quantified information available. With econometrics, economists were finally able to test those theories …

When you hear the word “enterprise,” what springs to mind? Maybe a big company like Coca-Cola or IBM. Rarely do people think of an enterprise as being their own business? But in fact, every small business is also an enterprise. The thing that differentiates a small business from other types …