Understanding Financial Concepts: From Government Bonds to Economic Booms and Busts

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[...] Understanding Financial Concepts: From Government Bonds to Economic Booms and Busts I Definition Government Bond A government bond is a debt security issued by a government in order to support government spending and obligation. These can be paid periodically, and they are sold to investors to support government spending. Corporate Bond A corporate bond is a debt security where an investor gives an amount that a company needs, and in return he received a number of interest payments. When the time is out, these payments cease, and the amount invested a the beginning is returned at the investor. [...]

[...] Explain Fiscal Policy Fiscal policy is a mean for governments to monitor a nation economy, by adjusting its spending levels and tax rates. It is used alongside the monetary policy in order to direct a country's economic goal. Explain Monetary Policy Monetary policy is a restrictive mean used by governments that refers to all the actions taken by a nation's central bank to control money supply. Monetary policy's goal is to ensure the sustainable economic growth of a country. What is a Central Bank CENTRAL BANK is an apex institutions of the financial system which operates, controls,directs and regulate the monetary and financial system of a country.It manages a state's currency,money supply and interest rates .In every country ,there is central bank'. [...]

[...] This phenomenon results from a movement of mass panic which causes important sales on a stock exchange. This movement becomes a vicious circle which exacerbates the fall in prices. What is a Boom in the economy? A boom refers to a sudden, usually short-lived, rise in one or more securities within a business, market, industry, or economy as a whole. A boom for a country is marked by growth in GDP. For a sole proprietorship, a boom is rapid growth in sales. [...]