Plain-English definitions for the terms you'll encounter on your financial journey.
The total supply of goods and services that firms in a national economy plan on selling during a specific time period. It represents the total productive capacity of the economy.
A lender's assessment of a borrower's ability to repay a loan based on their income, employment history, and current financial obligations.
A life insurance policy taken out by a business to compensate for financial losses that would arise from the death or incapacity of a vital employee.
The maximum level of output an economy can produce when it is operating at full capacity. It assumes that labor and capital are being used efficiently without causing inflation.