|
|
ZERO BOND: Also termed a zero coupon bond, a bond that does not pay interest, in which the return is generated by the difference between the purchase price and the face value paid at maturity. Because they do not pay interest, zero bonds are sold at a discount. For example, a $10,000 zero bond that matures in one year, would generate a 10% return if it sold at a discount of $9,000.
Visit the GLOSS*arama
|
|
|
|
|
Lesson 19: Money Creation | Unit 5: Policy
|
Page: 20 of 23
|
|
Controlling the money creation process is the key to understanding the role that money plays in the economy. In the old days: - Money was issued by government. With print and mint they had complete control over the quantity of money.
In the modern economy:- Checkable deposits are directly under the control of commercial banks. Government must control banks to control money.
Some history:- In the late 1800s, banks ran amuck, creating money as they saw fit. The economy experienced perpetual turmoil.
- In the 1970s and 1980s, S&Ls had instability problems.
- Since the mid 1980's, money creation has been under control. The economy has been strong and growing.
|
|
|
|
|
|
|
AXIOM A basic precondition or assumption underlying a theory. Axioms are basic, unverifiable world view assumptions--including personal beliefs, political views, and cultural values--that form the foundation of a theory.
Complete Entry | Visit the WEB*pedia |
|
|
BEIGE MUNDORTLE
[What's This?]
Today, you are likely to spend a great deal of time at a going out of business sale wanting to buy either a graduation present for your niece or nephew or a toaster oven that has convection cooking. Be on the lookout for celebrities who speak directly to you through your television.
Your Complete Scope
This isn't me! What am I?
|
|
|
Okun's Law posits that the unemployment rate increases by 1% for every 2% gap between real GDP and full-employment real GDP.
|
|
|
"Courage is the ladder on which all the other virtues mount." -- Claire Boothe Luce, diplomat, writer
|
|
EER
European Economic Review
|
|
|
Tell us what you think about AmosWEB. Like what you see? Have suggestions for improvements? Let us know. Click the User Feedback link.
User Feedback
|
|
