32 notes in this chapter

Finance and Economics MOC

Core finance and economics vocabulary for understanding how economies, markets, and personal money decisions work. Each note has: definition, how it works, why it matters, related terms, and a concrete example.

Macroeconomics

• Macroeconomics vs Microeconomics
• GDP (Gross Domestic Product)
• Inflation
• Interest Rate
• Supply and Demand
• Central Bank and Monetary Policy
• Recession
• Fiscal Policy
• Exchange Rate
• Unemployment Rate
• Real vs Nominal Value

Markets & Personal Finance

• Compound Interest
• Stock Market
• Diversification
• Liquidity
• Portfolio and Asset Allocation
• Credit and Debt
• Opportunity Cost
• Bull Market vs Bear Market
• Risk and Return Tradeoff
• APR vs APY (Annual Percentage Rate vs Annual Percentage Yield)

Corporate Finance & Investing

• Bonds
• Market Capitalization
• Dividend
• Price-to-Earnings (P∕E) Ratio
• Yield Curve
• Mutual Funds and ETFs
• ROI (Return on Investment)
• IPO (Initial Public Offering)
• EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization)
• CAGR (Compound Annual Growth Rate)
• M&A (Mergers and Acquisitions)