Tag Archives: Economics

Many people do not know what is an effective interest, and how to calculate it. Actually, it is a very simple concept, and it is very easy to calculate. First, you need to understand that interests are expressed in annual terms. When the bank says that it will loan you a sum of money at… Read More »

Today I learned a simple principle in Macro-Economics, that I was surprised I was not aware of before. As you know, Factional-Reserve banking (FRB) is a system in which commercial banks create money with every loan they give, and people destroy money when they return loans. Commercial banks are allowed to lend up to a… Read More »