How_Money_Works_-_The_Facts_Visually_Explained

238 239 Treasury Inflation-Protected Securities (TIPS) are slightly different securities. The principal amount is adjusted by th ...

The Fed and the US economy The Federal Reserve Act produced a decentralized bank that could also handle the competing interests ...

240 241 that. The APR might be 3.5 percent + 10.5 percent, or 14 percent. If the prime rate goes up (prodded by the increase in ...

Mortgages There are many different types of mortgage lenders in the US, from banks to credit unions to nonbank lenders, such as ...

242 243 Mortgage Trends The housing market has improved to the point where new home sales have hit their highest levels since Ap ...

Credit debt In 2000, there were 1.4 billion credit cards in circulation. Fast forward 12 years to 2012 and there were 1.17 billi ...

244 245 Social Security Americans pay a special tax on their income under the Federal Insurance Contributions Act (FICA). Also r ...

Taxing savings and investments Savings accounts, in general, have low returns right now, but the amount is still taxable. This r ...

246 247 IN H E RITANC E AN D E S TATE TA X Inheritance tax In the US, inheritance tax is levied by the state. It applies when yo ...

Page numbers in bold refer to main entries. 9-11, impact of 241 24-hour-maturity money market funds 87 401(K) 245 A absolute ret ...

248 249 HOW MONEY WORKS Index capital risk 192, 193 capitalizing vs expensing 27, 30–31 Carter, Jimmy 240 cash 186 advances 219 ...

INDEX dependents’ accounts 246 depletion 32–3 deposit (property) 176, 242, 243 deposit accounts 56, 87, 166–7, 246 deposit liabi ...

250 251 HOW MONEY WORKS Index fund managers 80–81, 169, 184 fund supermarkets 187 fundamental analysis 62, 63 funding level, pen ...

INDEX derivatives 52–3 dollar cost averaging 190–91 earning income from savings 166–7 financial instruments 46–7 fluctuating val ...

252 253 HOW MONEY WORKS Index mortgage rates 214–15 subprime 92, 215 trends 243 types of 212–13, 242 United States 242–3 MSCI EA ...

INDEX R raw materials, cost of 132, 133 real profit 28 real rate 121 real values 133 real-estate cycle, 18-year 179 real-time tr ...

254 255 HOW BUSINESS WORKS Index spread (forex) 59 Standard & Poor’s 500 169, 233 standard deviation 195 standard of living ...

Acknowledgments Dorling Kindersley would like to thank Alexandra Beeden for proofreading, Emma Wicks for design assistance, Phil ...

100 101 GOVERNMENT FINANCE AND PUBLIC MONEY Managing state finance Central bank The central bank creates and supplies reserve mo ...

THE CENTRAL BANK Managing the monetary system By raising or lowering its reserve rate of interest, a central bank can influence ...