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EQUATION OF EXCHANGE: An equation that specifies the relation between the money supply, the velocity of money, the price level, and real production. The equation is stated as M*V = P*Q, where M is the money supply, V is the velocity, P is the price level, and Q is real production. This equation is a key component of the quantity theory of money, which offers an explanation between the money supply and inflation.

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STATE BANKS

Traditional banks that are chartered by a government of one of the fifty states and which are not automatically members of the Federal Reserve System. The contrast to state banks are national banks, which are chartered by Comptroller of the Currency. State banks tend to smaller than national banks and whether justified or not tend to be slightly less prestigious. In the modern economy this distinction is less important than it was a few decades bank when state banks were subject to lesser state regulations than national banks.

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Today, you are likely to spend a great deal of time flipping through the yellow pages trying to buy either a remote controlled World War I bi-plane or a wall poster commemorating Thor Heyerdahl's Pacific crossing aboard the Kon-Tiki. Be on the lookout for malfunctioning pocket calculators.
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In his older years, Andrew Carnegie seldom carried money because he was offended by its sight and touch.
"Motivation is everything. You can do the work of two people, but you can't be two people. Instead, you have to inspire the next guy down the line and get him to inspire his people."

-- Lee Iacocca, Chrysler chairman

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