Difference between Recession and Depression

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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 …

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Difference between Gross and Net

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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 …

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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, …

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Starting a Business From Home

What is an SME? · SME is a shorthand for Small Medium-sized Enterprises and fits into European Community definitions for support purposes. · SME’s have less than 250 employees, lower turnover and assets than €50 million. · Micro businesses have less than 5 employees but are also SME’s. · SME’s can be sole traders, partnerships, …

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Credit Union Borrowing and Saving

The Co-operative movement has a long tradition of financial prudence and support for members. Parents and grandparents will remember saving the ‘Divi’ on food purchases or even opening a share account at the local Co-op. The Co-op has moved on with its own Co-operative Bank plc although it still retains much of what was good …

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Compound Interest Pros and Cons

Definition of Compound Interest – Compound is defined in the Oxford concise dictionary as ‘….increase, complicate, …debt by partial payments…’ and whilst none of these definitions directly addresses the issue of compound interest you may begin to see where we are coming from. Compound Interest is the effect of ‘interest on interest’ and happens when …

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Protect your Credit Score

Your ability to borrow money or borrow money on good terms is influenced by your credit score. This is an amalgam of your history with financial institutions, credit cards, store cards banks and other lenders. If you never borrow, never get into debt, always repay your credit cards 100% first time then you will not …

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Why Life Insurance and Assurance is Useful

Insurance is a means of protecting the loss or costs caused by an event that may or may not happen. Insurance coverage is by a contract in which one party, the insurer, agrees to indemnify or reimburse another, the insured, for loss that occurs under the terms of the contract. In exchange for payments from …

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