What's it: National debt is money owed by the government to its creditors. The government owes money to cover the budget deficit, where revenues are less than expenditures. And the higher the deficit, the bigger the debt.
Debt
Collateral: How it Works and Why It Matters
What's it: Collateral is a borrower's asset pledged when taking out a loan. They agreed to turn it over to the lender when they defaulted on the loan. For lenders, it aims to secure loan repayments and reduce the impact of a default.
Government Debt: Meaning, How It Works, Good, Bad
Government debt, public debt, or national debt represent the amount of money borrowed by the government. According to the International Institute of Finance (IIF), public debt will reach USD70 trillion in 2019, up from USD65.7 trillion in
Debt-to-Equity Ratio: Calculation and Interpretation
What's it: The debt-to-equity ratio is a leverage ratio by compares the relative proportions of a company's capital structure. Specifically, it measures how much debt capital is compared to equity capital. A higher ratio indicates
Assets-to-Equity Ratio: Calculation and Interpretation
What's it: The asset-to-equity ratio is a financial ratio indicating the extent to which a company's assets are financed through equity. We calculate it by dividing total assets by equity. We can find this ratio in the