Explain and comment on few important concepts in Finance market?

Explain and comment on few important concepts in Finance market?

After article by Ronnie Ann

http://www.personal-finance-site.com/guide-to-basic-finance-concepts/

Let's start with how banks work

products

It's a Wonderful Life

So where does your money go?

trickle down theory

How Banks Create Money

What about bank interest rates?

Now let's look at an example

Where do these bank interest rates come from?

 Fed Funds Rate

Some basic bank products

• CDs — A type of "time deposit" with a set maturity date, such as 6 months, one year, two years, etc. The further out the maturity date, the higher the interest rate. Some have minimum amounts you need to invest. You also need to watch out for automatic renewals.
• Savings accounts — A basic deposit account to park your money if you want to keep it liquid — meaning you have access to it any time. Interest rates most banks pay for savings now are very small, although probably more than checking accounts. So, for money you don't need in the near future, look at bank CDs or higher-paying market type investments.
• Checking accounts — Another liquid bank account. But you can write checks. Some even pay interest — although not much. Nowadays, with online accounts, you can have automatic payments deducted from checking or savings, eliminating the need for most checks. But a useful feature of checking accounts is the overdraft feature if you set that up. Personally, I still like my checking account for active transactions. But make sure you ask about any fees. 
• Money Market deposit accounts — These are NOT the same as money market investment accounts, which are money market funds. They usually pay less than a savings account, but let you write a limited number of checks. They are bank products, so they are FDIC insured, while money market funds that you get through a broker are not.
• Negotiable order of withdrawal (NOW) account — These were popular for a while but are rarely seen nowadays. They were developed before you could have interest-bearing checking accounts. But now you can, so you can pretty much ignore this. 

NOTE about FDIC insurance: accredited bank

What about bank brokerage?

NO FDIC insurance

NOTE:inflation

Basic finance concepts of investing

Earning money with your money

rate of return. 

risk

So, what about something safer?

treasury securities

Portfolio theory to the rescue

Portfolio theory

Portfolio Theory: Why Diversified Investing Is So Important

What about mutual funds?

Mutual Funds

Morningstar.com

 no-load funds 

What about index funds?

index funds

what goes up can also go down!

A little more about bonds

Bonds 

interest rate and price have an inverse relationshippar selling

 ⇒  A Simple Guide To Bonds & Bond Terms

you get full value plus all the interest you've earned

The secondary market effect

secondary market,

NOTES:

⇒ How Much Money Do You Need To Retire?

Some basic finance concepts for stocks

stocks

Mad Money

Back to our friend diversification

gamble

BONUS: Some basic concepts of economics

Present value "A dollar today is worth more than a dollar tomorrow."

opportunity cost

Present Value: Understanding Value of Money Today

Supply and demand

Price elasticity

Cost-benefit analysis 

A lesson that applies to all economic analysis

weighted