Table Of Content

Cover Page: 1 Contents_1 Page: 5 Contents_2 Page: 6 Introduction Page: 9 MONEY BASICS Page: 11 The evolution of money Page: 12 Barter, IOUs, and money Page: 14 Artefacts of money Page: 16 The emergence of moderneconomics Page: 20 Economic theories and money Page: 22 PROFIT-MAKING AND FINANCIALINSTITUTIONS Page: 25 Corporate accounting Page: 26 Net income Page: 28 Expensing vs capitalizing Page: 30 Depreciation, amortization, depletion Page: 32 Smoothing earnings Page: 34 Cash flow Page: 36 Gearing ratio and risk Page: 40 How companies use debt Page: 42 Financial reporting Page: 44 Financial instruments Page: 46 Shares Page: 48 Bonds Page: 50 Derivatives Page: 52 Financial markets Page: 54 The money market Page: 56 Foreign exchange and trading Page: 58 Primary and secondary markets Page: 60 Predicting market changes Page: 62 Arbitrage Page: 64 Manipulating the stock market Page: 66 Day trading Page: 68 Financial institutions Page: 70 Commercial and mortgage banks Page: 72 Investment banks Page: 74 Brokerages Page: 76 Insurance risk and regulation Page: 78 Investment companies Page: 80 Non-bank financial institutions Page: 82 GOVERNMENT FINANCEAND PUBLIC MONEY Page: 85 The money supply Page: 86 Increasing money circulation Page: 88 Banking reserves Page: 90 Recession and the money supply Page: 92 Recession to depression Page: 94 Managing state finance Page: 96 Governments and money Page: 98 The central bank Page: 100 Budget constraint Page: 104 How tax works Page: 106 Government borrowing Page: 108 Public debt Page: 110 Accountability Page: 112 Attempting control Page: 114 Reading economic indicators Page: 116 Deciding on economic policy Page: 118 Interest rates Page: 120 Quantitative easing Page: 124 The level of taxation Page: 126 Government spending Page: 128 How governments provide forthe future Page: 130 Inflation Page: 132 Balance of payments Page: 136 International currency fluctuations Page: 138 Managing state pensions Page: 140 Why governments fail financially Page: 142 How governments fail: hyperinflation Page: 144 How governments fail: debt default Page: 146 PERSONAL FINANCE Page: 149 Worth, wealth, and income Page: 150 Calculating and analysing net worth Page: 152 Income and wealth Page: 154 Converting income into wealth Page: 156 Generating income Page: 158 Generating wealth Page: 160 Investments for income Page: 162 Dividends from shares Page: 164 Earning income from savings Page: 166 Investing in managed funds Page: 168 Rental income from property Page: 170 Life assurance Page: 172 Wealth-building investments Page: 174 Investing in property Page: 176 Home equity Page: 180 Shares Page: 182 Managed funds Page: 184 Managing investments Page: 186 Asset allocation and diversification Page: 188 Dollar cost averaging Page: 190 Risk tolerance Page: 192 The optimal portfolio Page: 194 Pensions and retirement Page: 196 Saving and investing for a pension Page: 198 Converting pensions into income Page: 202 Debt Page: 204 Why people use debt Page: 206 Interest and compound interest Page: 208 Loans Page: 210 Mortgages Page: 212 Credit unions Page: 216 Credit cards Page: 218 Money in the digital age Page: 220 Cryptocurrency Page: 222 Bitcoin Page: 224 Crowdfunding Page: 226 Peer-to-peer lending Page: 228 Money in the UK Page: 231 Index Page: 248 Acknowledgments Page: 256

Description:

It makes the world go round, but money can truly be an enigma. DK's visual approach breaks new ground. In graphics, charts, and diagrams, How Money Works demystifies processes and answers the hundreds of financial questions we all have. Money facilitates the billions of transactions that take place every day across the globe. Using 'need to know' boxes, step-by-step diagrams, and other eye-catching visuals, How Money Works shows you how this is possible. It explains economic theories, how governments raise and control money, what goes on in the stock exchange, how analysts predict where shares are heading, and many other issues. It busts jargon, explaining terms such as quantitative easing, cash flow, bonds, superannuation, and the open market. Our forefathers may have used simple bartering to exchange goods and services, but today we depend on complicated financial instruments for pensions, life assurance, mortgages, and more. How Money Works explains how these work, as well as how to avoid on-line fraud and where to invest. With information on the latest forms of funding and currencies such as Bitcoin, this comprehensive book will fast track you to financial literacy and getting the most from your hard-won cash.