Personal Budget Basics for Beginners

DON’T say the B-word. What caused this stigma I have no idea, but one thing is for certain, people who don’t know how to handle their money in the most basic ways know one thing for sure, don’t tell me to ‘budget’. The fact of the matter is...

Treasury Bills (T-Bills) and Interest Rates Summary

Here is some brief notes on the function and descriptions of these financial instruments. Treasury Bills (T-Bills) Government of Canada issues T-Bills in certain lengths: 98,182, 364 days – issued in denominations of $1000.00 – bought at a discount –...

Financial Statements – Terms and Explanations

Definitions on Income Statements Here is a brief synopsis of key financial terms for introductory finance majors and business folks regarding income statements and balance sheets. Firstly, defining some terms: Income Statement : A statement measuring a firm’s...

Deriving the Aggregate Demand Curve

Check out this graph: For a given nominal money stock, a price level decrease increases the real money stock. This shifts the LM curve outward, and the interest rate goes down and income increases. Therefore, along the AD curve, a price level decrease )holding the...

Money Creation – Where Does the Money Come From?

How Banks Create Money continued One of our popular posts located here talks about ‘how banks create money’. You should read that link before this one as it is the necessary part 1 of this series on money creation. A lot of people think it’s a huge...

Internal Rate of Return, Cash Flow, and NPV

Calculating and Interpreting Internal Rate of Return (IRR) This post continues a discussion about cash flow, net present value, and interest rates and NPV, which you can read by clicking on the specific links. This post deals with the topic of internal rate of return....