ymogun2 - Finance and Financial Design Blog

Yesterday I asked my mom to raise my allowance and I was sad. My mom says that when I was a child, I was saved even if I had less pocket money than I did. Once upon a time, it was 100 won for a fishbowl, 500 won for a dish of rice cake. Nowadays, they do not sell 1,000 pieces of rice cake. Also, yesterday, when I got 1,000 won, my notebook went up to 1,200 won. The value of the goods keeps rising, but my pocket money is in place, maybe it is good! Causes and solutions of inflation - Why would price 1) rise? If the price goes up and the value of the money goes down, go to the mother and the market or a large mart. If the 500 won ice cream went up to 700 won, what was the value of money? You can say that the value of money has fallen because you have to spend 200 won more. In addition to the price of notebooks, the price of other commoditieswill increase and you will have to spend more money than now, so the value of money will be lower and you will need more money. Inflation is ...

"It is money that is wide and wide ..." Whenever an empty wallet is sad, it is a complaint. So seriously and more seriously. How much is the money that 's been around a lot. Obviously, the money that the Bank of Korea has taken is not everything. Even if you do not care about monetary economics tremendously , you may have learned about money multiplier and credit creation if you have learned economics in secondary school . The notion of reserves for the payment of the bank comes at this time. On the basis of this, the Bank of Korea measures M1, M2, and M3 currency levels and conducts a professional analysis of how much liquidity is released on the market. The process of creating another money (called credit money) as the money taken by the central bank is distributed to the public through banks is called 'credit creation'. It is because of the global crisis that these words, which appeared in textbooks, are used frequently and frequently these days. Because ...

When a bank deposits its first deposit (the first deposit received), the bank leaves only a certain amount of reserves, and the rest of the loans are made. If the loan is used again, the bank will make a loan again. In this way, the phenomenon that a bank creates a deposit currency more than several times the initial deposit amount through a loan is called credit creation or deposit creation. And a multiple of the amount of money raised in the process of credit creation is called a credit multiplier. - Loans and deposits are repeated and the entire loan is deposited back into the bank in the form of derivative deposits (deposits deposited with current deposits) Once the process is repeated, the credit creation limit (X) for a given original deposit is defined as X = C (1-R) ​​/ R. Where C is the original deposit, and R is the bank's reserve prepayment rate. - Credit crunch means that households or businesses suffer difficulties as financial institutions do not pro...

Credit inflation is often used to refer to the case where excessive credit expansion causes water prices . Excessive credit refers to a situation in which a borrower who is unable to pay is credited and the bank provides credit beyond the limit of the deposit, indicating a credit expansion that corresponds to the output level. In the boom period, the credit expansion and the price of the ears occur at the same time, but the credit expansion at this time reflects the expansion of the reproduction and the increase of the transaction amount. Even at the end of the boom, when there is a limit to the accumulation of capital, credit still continues to expand. At this time, excessive credit occurs, and such credit brings the price of water for a certain period of time. In times of depression, if credits to be shrunk in response to shrinking reproduction are sustained at a high level supported by low interest rate policies or bailouts, excessive credit will prevent price declines fo...

Funds are divided into bonds and equity depending on whether they buy bonds or buy stocks. Funds can be divided into growth type, stable growth type, and stable type depending on the stock addition ratio. ■ Bond-type fund / equity-type fund The classification of a fund is divided into equity, hybrid, and bond types depending on how much money you invest in stocks. If you invest more than 60% in stocks and bonds, Respectively. In other words, "bond fund" is a commodity that invests more than 60% of trust assets in bonds and bonds-related derivatives without including stocks (including stock-related derivatives) in the operation target. 'Equity-type funds' are commodities that invest more than 60% of trust assets in stocks and equity-linked derivatives (stock index futures and options), and equity-type funds have the risk of incurring principal, unlike bonds. On the other hand, if the stock market is highly profitable, it can generate high returns. ...

A fund that invests a certain amount of money for a long period of time. A fund is a product that invests in stocks or bonds with money generated from an unspecified number of people. Most funds have investors investing a certain amount of money at once, but accumulative funds are investing a certain amount at regular intervals like regular gold. The proceeds are determined by the performance of the operation. Earnings funds have the advantage that they are less risky than other financial instruments that need to invest a lot of money at the same time. However, since the profit depends on the operating results, if the stock price falls at maturity, there is a risk that the yield is low, or if the profit is severe, the principal loss is also required.