Table Of Content

Copyright 2015 by ABC-CLIO, LLC All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, except for the inclusion of brief quotations in a review, without prior permission in writing from the publisher. Library of Congress Cataloging-in-Publication Data Personal finance : an encyclopedia of modern money management / Barbara Friedberg, editor. pages cm ISBN 978-1-4408-3031-0 (hardback) — ISBN 978-1-4408-3032-7 (ebook) 1. Finance, Personal. I. Friedberg, Barbara, 1954- HG179.P3747 2015 332.024003—dc23 2014042011 ISBN: 978-1-4408-3031-0 EISBN: 978-1-4408-3032-7 19 18 17 16 15 1 2 3 4 5 This book is also available on the World Wide Web as an eBook. Visit www.abc-clio.com for details. Greenwood An Imprint of ABC-CLIO, LLC ABC-CLIO, LLC 130 Cremona Drive, P.O. Box 1911 Santa Barbara, California 93116-1911 This book is printed on acid-free paper Manufactured in the United States of America This encyclopedia is dedicated to Bob, who encouraged me to share my knowledge through writing. His unwavering support and encouragement is an underpinning to the creation of this important financial education resource. Contents Guide to Related Topics Preface Introduction Ideas and Concepts Accountant Affordable Care Act Alimony Annuity Asset Allocation Banking Bankruptcy Behavioral Finance Bonds Budget Capital Gains and Capital Losses Capitalism Cash Certificate of Deposit Checking Account Commodities Compound Interest/Return Condominium Consumer Credit/Debt Credit Card Credit (or Bond) Rating Agency Credit Report and Reporting Agencies Credit Score Credit Union Currency Debt Debt Collection Debt/Credit Counseling Deficit Deflation Delinquency Derivatives Digital Currency Disability Insurance Discount Rate Dividend Income Estate Planning Federal Reserve Bank Financial Advisor Flexible Saving Account Gross Domestic Product (GDP) and Gross National Product (GNP) Health Insurance Hedge Funds Homeowner’s and Renter’s Insurance Human Capital Identity Theft Index Mutual Funds Inflation Inflation-Protected Investments Interest Income and Payments Interest Rates Investing Liabilities Life Insurance Liquidity Loans Margin Medicaid Medicare Money Market Account Mortgage Mutual Funds and Exchange-Traded Funds (ETFs) Net Worth Online Personal Finance Opportunity Cost Pension Plans Portfolio Management Power of Attorney Probate Real Estate Real Estate Investment Trust (REIT) Rent to Own Retirement Retirement Accounts Risk Risk Premium Savings Account Social Lending or Peer-to-Peer Lending Social Security Stock Market Stocks Systematic Market Risk Tax Deferral Tax Return, Federal Time Value of Money Treasury Securities Umbrella Insurance Unemployment U.S. Federal Tax System Overview Wills and Trusts Events Year 1930s: The Great Depression Year 1944: Creation of the International Monetary Fund and the World Bank at the Bretton Woods International Conference Year 1970s to 1980s: Economic Problems and the United States Year 1987: Stock Market Crash Year 1989–1991: U.S. Savings and Loan Crisis Year 1994: North American Free Trade Agreement between Mexico, Canada, and the United States (NAFTA) Year 1997–1998: Asian Financial Crisis Year 1999: Introduction of the Euro to World Financial Markets Year 2000: Bursting of the Dot-Com Technology Bubble Year 2001: Enron, the Failure of Corporate Finance and Governance Year 2002: Sarbanes-Oxley Act Year 2003–2011: Iraq War’s Impact on the U.S. Economy Year 2005: Growth of China and India as World Economic Powers Year 2007–2008: Subprime Housing Crisis and Mortgage Meltdown Year 2007–2009: Global Recession and Breakdown of Major Wall Street Institutions Year 2010: Dodd-Frank Wall Street Reform and Consumer Protection Act Year 2011–2012: European Debt Crisis People Bernanke, Ben S., 14th Chair of the U.S. Federal Reserve Board Bloomberg, Michael R., American Politician and Businessperson Bogle, John, Founder of The Vanguard Group Buffett, Warren, Owner of Berkshire Hathaway Inc. Bush, George W., 43rd President of the United States Clinton, William, 42nd President of the United States Geithner, Timothy F., 75th Secretary of the U.S. Treasury Greenspan, Alan, 13th Chair of the U.S. Federal Reserve Board Lagarde, Christine, Managing Director, International Monetary Fund Markowitz, Harry M., Father of Modern Investment Portfolio Theory Obama, Barack, President of the United States Paulson Jr., Henry M., 74th U.S. Secretary of the Treasury Rubin, Robert E., 70th U.S. Secretary of the Treasury Schapiro, Mary, 29th Chair of the U.S. Securities and Exchange Commission Shiller, Robert J., 2013 Nobel Laureate in Economics Siebert, Muriel, First Woman to Own a Seat on the New York Stock Exchange Volcker, Paul A., 12th Chair of the U.S. Federal Reserve Board Warren, Elizabeth, Former Special Advisor for the Consumer Financial Protection Bureau Yellen, Janet, 15th Chair of the U.S. Federal Reserve Board Glossary Bibliography About the Editor and Contributors Index Guide to Related Topics Banking Banking Bernanke, Ben S., 14th Chair of the U.S. Federal Reserve Board Cash Certificate of Deposit Checking Account Consumer Credit/Debt Credit Card Credit Union Currency Digital Currency—Bitcoin Federal Reserve Bank Flexible Saving Account Geithner, Timothy F., 75th Secretary of the U.S. Treasury Greenspan, Alan, 13th Chair of the U.S. Federal Reserve Board Identity Theft Interest Rates Lagarde, Christine, Managing Director, International Monetary Fund Liquidity Loans Money Market Account Mortgage Net Worth Paulson Jr., Henry M., 74th U.S. Secretary of the Treasury Risk Risk Premium Rubin, Robert E., 70th U.S. Secretary of the Treasury Savings Account Schapiro, Mary, 29th Chair of the U.S. Securities and Exchange Commission Siebert, Muriel, First Woman to Own a Seat on the New York Stock Exchange Social Lending or Peer-to-Peer Lending Time Value of Money Treasury Securities Volcker, Paul A., 12th Chair of the U.S. Federal Reserve Board Warren, Elizabeth, Former Special Advisor for the Consumer Financial Protection Bureau Year 1930s: The Great Depression Year 1944: Creation of the International Monetary Fund and the World Bank at the Bretton Woods