Explanations Category

This page contains posts filed under the ‘Explanations’ category. That means the posts on this page are explanations and definitions of important terms I’ve used on this website.

Currency Pair

May 11, 2011

Do you know what a currency pair is? Are you familiar with its components as well as what each component signifies? If you aren’t and would like to be familiar and knowledgeable about currency pairs, then this is absolutely the place you want to be. Because on this web page, I will explain what a […]

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Price Interest Point

May 3, 2011

As I continue to write content pertaining to currency trading, fundamental economic developments and monetary policy actions taken by central banks, I find myself mentioning a term that I have yet to explain. That term is ‘pip’ and it’s an abbreviation that is thrown around all the time in the currency trading world. But what […]

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Switzerland National Bank

April 17, 2011

The Switzerland National Bank, also known as the SNB, Swiss National Bank, Schweizerische Nationalbank (no space between National and Bank), Banque nationale suisse, Banca nazionale svizzera and Banca naziunala svizra is the central bank of Switzerland since 1907. It’s mandate or primary responsibility is devising Switzerland’s monetary policy to ensure price stability while being mindful […]

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United States Treasury Security

March 29, 2011

When it comes to understanding how the Federal Reserve implements most of its monetary polices, where investors move their money when they want safer investments and how the United States acquires more money needed for running the government and all of its programs, then the United States Treasury Security is what you should learn about. […]

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Bureau of Engraving and Printing

February 16, 2011

You’ll be surprised how many people think that the United States Mint is the government agency responsible for manufacturing and printing the United States’ currency, the Federal Reserve note. If you thought the U.S. Mint was responsible for manufacturing and printing the United States dollar too, then I want to take this time to introduce […]

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Economic Indicator

February 15, 2011

As I cover various fundamental economic developments going on in any one country at any one time, I will definitely be referring to well known and not so well known ‘economic indicators‘. But one thing that comes to mind whenever I mention the term ‘economic indicators’ is that I’ve never explained to you what it […]

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Employee

February 14, 2011

If you aren’t sure what the term ‘employee‘ means and you want an explanation, then continue to read the contents of this page. On this page I will be explaining what an ‘employee’ is and how it helps an economy grow. Chances are, if you have bills and you are in need of an income, […]

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Employer

February 12, 2011

If you are wondering what an employer is, then here is where you want to be. Why? Because on this page I will be explaining what an employer is and its role in an economy. The term ‘employer’ is one of those terms that many people have a basic understanding about, but many may not […]

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Employment

January 26, 2011

There are some terms that pertains to an economy that are well known. One such term is “employment“. There is a good chance that you, my good reader, are employed via some organization in order to generate an income. Hey, employment is the most popular way to earn money. So if you are earning money, […]

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Loan

January 24, 2011

On this page I will be taking the time to explain what a “loan” is. If you didn’t know, loans play a very important role in modern societies. It is through loans where commercial banks make the majority of their profits. It is through loans where a majority of small businesses get the capital they […]

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Producer

January 24, 2011

Are you familiar with the term “producer”? Have you heard or read things like, “Producers are making record profits.” or “Producers aren’t happy with the slow shopping trend.” or anything like that? If you have, it doesn’t surprise me because the term “producer” is used all the time in news articles, mentioned on television and […]

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Consumer

January 14, 2011

Have you ever purchased a carton of milk at a local grocery store? How about buying a pair of tickets for you and your date to see the latest and greatest movie? Have you purchased a birthday present for a loved one? Let’s get more general. Have you ever purchased a product of any type, […]

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Commercial Bank

January 11, 2011

There are two popular kinds banking institutions in every established country. One kind of banking institution is known as a central bank. Central banks are the supreme authority in the banking industry. The other kind of banking institution is known as a commercial bank. A commercial bank is regulated and under the direct authority of […]

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Supply and Demand

January 10, 2011

What supply and demand represents has major influence on the cost of goods and services in an economy, how central banks determine what monetary policies to implement and thus affects the valuation of currencies and so much more. Supply and demand is a key term that you must know about if you plan to have […]

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