What Are Debentures?

A debenture is a medium or long term debt format that large companies use to borrow money at a fixed rate of interest. It is unsecured by collateral and thus it relies on the credit worthiness and reputation of the issuer for support. Both corporations and governments frequently issue debentures to raise capital or funds. …

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Walras’s Law Explained

We know that markets are constantly in flux and prices constantly change. The question is will there always be a price vector where all markets for different goods clear? Being that one of the principle focus of economics is understanding the determination of price, if equilibrium does not occur then we have a serious problem …

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