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How Amortization Works

Anyone who has purchased a home has probably heard the term “amortization”. However, that does not necessarily mean every homeowner understands it. Amortization is an easy concept for bankers and mortgage lenders to grasp because they have been trained in all the fine details of borrowing and lending. It is not so easy for the average consumer.

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Deflation Explained

We hear an awful lot about inflation, especially during tough economic times, but what about deflation. The concept of deflation might be foreign to most of us because we hear of it so rarely. Truth be told, deflation is just the opposite of inflation. It can be equally damaging to an economy.

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Introduction to the Clayton Act

The Clayton Act, also known as the Clayton Antitrust Act of 1914, was introduced to correct some of the inadequacies of the previously passed Sherman Act of 1890. The latter legislation was intended to deal with monopolies once they were found to dominate a given market. The Clayton Act changed the dynamic by outlawing some of the practices that would enable a company to become a monopoly.

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The Bank Failure Explained

Banks are similar to any other business inasmuch as they can fail or succeed based on the actions of ownership and management. What makes a bank failure different is the fact that it can have such a negative impact on so many other institutions and individuals. It is not like a mom and pop shop where closing would negatively affect only business owners and a few employees. When a bank fails, that failure has a ripple effect that can trouble the entire economy.

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Why Absolute Poverty Is Not Always a Reliable Measurement

Absolute poverty is an economic measurement that determines an individual’s financial ability to obtain the basic necessities of life. It is also a measurement that used to justify investing monies to help developing countries and, in some respects, even the poverty-stricken in our own country. However, absolute poverty is not always a reliable measurement of need. Why? Because of the units used to quantify poverty levels.

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A new twist on the impact of technology on productivity and job growth

Government officials and economists the world over have had great difficulty, especially in developed countries, in stimulating job growth to a material degree in their respective economies, ever since the millennium crossover. Productivity has continued its steady rise up the scale, but according to most economics textbooks, these gains are supposed to lead to more jobs, higher wages, and greater wealth accumulation, but such has not been the case for a disturbingly lengthy period of time.

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Returns of Shares

The returns of shares are fortune that a shareholder gains directly because of his ownership of shares. It is the immediate cause for investors to deal with shares.

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Index Tracker Fund

Index tracker fund (also known as index funds, tracker funds, and index trackers) is defined as a collection of securities that resemble the composition of an index. The most special feature of index tracker fund is that it buys all or part of the components in an index to build portfolio and adjust its ingredients while shares are deleted or added into the index. Thus its aims at replicating the movement of an index and obtain the profit at average market level.

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