252 253
HOW MONEY WORKS
Indexmortgage rates 214–15
subprime 92, 215
trends 243
types of 212–13, 242
United States 242–3
MSCI EAFE 169
multisector funds 168
multiplier effect 91
municipal bonds (Munis) 239, 246
mutual funds 246N
narrow money 86
Nasdaq (National Association of Securities
Dealers Automated Quotation System)
61, 232–3
Nasdaq Composite 233
National Association of State Budget
Officers (NASHO) 237
national debt 238, 239
national income 115
National Insurance (NI) 106, 140
National Stock Exchange (NSE) 233
natural resources 32–3, 136
negative cash flow 39
negative equity 181, 213, 243
negative interest 193
negative interest rate policy (NIRP) 123
negative net worth 153
net income 26, 28–9, 106
net worth 150, 152–3
New York Stock Exchange (NYSE) 49, 55,
60, 61, 64, 232–3
nominal rate 121
nominal values 133
nonbank financial institutions 70, 82–3, 242
not-for-profit organizations 205, 216, 217
notice savings accounts 72, 87, 166
NYSE Amex 233
NYSE MET 233O
Office of the Comptroller of the Currency
(OCC) 234
Office of Consumer Affairs (OCA) 234
Office of Management and Budget (OMB)
239
Office of the Superintendent of Financial
Institutions (OSFI) 234
offset mortgages 213
online brokers 76
online market places 159, 182
open market operations 98, 100, 103operating cash flow 39
operating expenses (property) 176
optimal portfolios 187, 194–5
options 52, 54, 163
ordinary shares 163
outgoings 154–5, 156, 157
over 24-hour-maturity money market funds
87
overdrafts 37, 73
overheads 36
overleverage 41P
partnerships 235
passive income 158, 159 , 160
passively managed funds 168
pawnbrokers 83
payday loans 210
payroll tax 37, 236
peer-to-peer lending 82, 166, 167, 220, 221,
228–9
pension contributions 199
pensions 196–203
consolidating 203
converting into income 202–3
pension funds 61, 201
saving and investing for 198–201
and share prices 183
see also private pensions; state pensions
personal finance 148–229
debt 204–19
income-generating investments 162–73
managing investments 186–95
money in the digital age 220–29
pensions and retirement 196–203
United States 242–7
wealth-building investments 174–85
worth, wealthy and income 150–61
personal loans 204
Philadelphia Stock Exchange (PHLX) 233
Phillips, Bill 114
Pigou, Arthur/Pigouvian tax 126
pledges, online 227
portfolios
asset allocation and diversification 188–9
brokers’ fees for managing 76
diversified 80
investment 47, 79, 162
optimal 187, 194–5
portfolio income 159
portfolio weighting 187, 189, 195
rebalancing 175, 195
positive cash flow 38
positive equity 180positive net worth 153
preference shares 163, 165
premiums, insurance 78, 79
prices
hyperinflation 144–5
inflation 116, 132–5
and market equilibrium 20–21
price data 63
price stability 100, 120
property 135
primary markets 60–61, 232
prime rate 240–41
private activity bonds 246
private investment 131
private pensions 196–7, 198
privatization 131
profit
downturn in 34
margins 72
reported 34
and share dividends 165
steady increase in 35
profit and loss accounts 34, 35
profiting 55
property
buying and selling for profit 178
commercial vs residential 178
home equity 180–81
investment in 161, 176 – 9
mortgages 212–15
prices 135
property cycle 178–9
property market 80, 176, 178
property tax 246–7
rental income 155, 163, 170 –71, 186
and wealth-building 175
protectionism 21
provision, making 34
public companies 60, 183
public debt 110 –11
public finance
attempting control 114 – 41
managing state finance 96 –113
money supply 86–95
United States and Canada 236 – 41
why governments fail financially 142–7
public services 104–5
public trust, loss of 142–3, 144Q
quantitative easing (QE) 98, 114, 124–5, 241
quoted shares 48, 182US_248-256_Index_Acks.indd 253 14/10/2016 12:43