What is inflation?
Inflation is the general rise in prices over time, which erodes what money buys. Central banks usually target around 2% a year — enough to avoid deflation without runaway prices.
Just know.
8 facts — science, space, the body, the world. No fluff.What is GDP?
Gross Domestic Product is the total value of goods and services an economy produces in a period. It measures the size of the machine, not how well it treats people.
What does a central bank do?
A central bank issues currency, sets interest rates and acts as lender of last resort. Raising rates cools inflation by making borrowing expensive; cutting them heats the economy up.
What is compound interest?
Interest that earns interest. At 7% a year money doubles about every decade — Einstein allegedly called compounding the eighth wonder of the world.
Why does money have value?
Because everyone agrees it does — money is a social technology for storing and transferring trust. Remove the shared belief (hyperinflation, bank runs) and the value evaporates.
What is supply and demand?
Prices settle where what people will buy meets what producers will sell. Shortages push prices up; gluts push them down. Nearly every market story is a variation on this.
How does insurance work?
Many pay small premiums so the unlucky few get large payouts. It converts catastrophic risk into a predictable cost — a bet you're happy to lose.
What is a stock?
A stock is fractional ownership of a company: a claim on its profits and assets, traded on exchanges. Shareholders profit through dividends and price growth.