Money & Personal Finance

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Difference between Recession and Depression

Definition of a recession A recession is characterised as a period of negative economic growth for two consecutive quarters. In a recession, unemployment will rise, output fall and government borrowing increase. See more on recessions Definition of depression A depression is a recession but much more severe and long lasting. There is no agreed upon definition of a depression. But, generally a depression would have some of the following characteristics. Decline in output for a prolonged period e.g. greater than 2 years. A drop in output of 10% or greater. Unemployment…

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Difference between Gross and Net

Definition of Gross Gross is the total amount exclusive of deductions. For example, gross pay, is the total pay before tax deductions Definition of Net Net is the total amount received after subtracting deductions from the gross amount Difference between gross and net interest rates Gross interest rate is the headline interest advertised by a bank Net interest rate is the effective interest rate after tax is deducted from the gross rate. It is the rate that will be credited into your…

Difference between Bonds and Loans

Difference between Bonds and Loans

A bond is a type of debt instrument. It is a way for a company or government to raise money by selling, in effect, IOUs – with annual interest payments. A loan is also a debt instrument, usually provided by a private bank with a variable interest rate. They are both methods of borrowing money, but with some differences. Bonds work by firms selling a bond for say £1,000. In return, the firm agrees to pay back the bond in 10,…

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Financial Conspiracies

]]> There have been some crazy financial conspiracies circulating the internet. Just proving that the internet is a place where anything goes. 1. Financial Crisis started by journalists / democrats who wished to see Barack Obama elected. (think progress) 2. Financial crisis evidence of economic terrorism. This is patently absurd and and gives the impression the crisis could be…

What to Expect  Starting your First Job

What to Expect Starting your First Job

When you become an employee your employer is responsible for deducting Income Tax and National Insurance from your salary before you receive it. This system is called PAYE (Pay As You Earn). When you start work, HMRC will send you a tax code on a ‘PAYE Coding Notice’. They also send a copy of the Coding Notice to your employer, who’ll use it to work out how much tax to deduct from your pay. Tips 1.      If you multiply the number in…