Adjustable-Rate Mortgage (ARM): What It Is and Different Types
What Is an Adjustable-Rate Mortgage (ARM)? The term adjustable-rate mortgage (ARM) refers to a home loan with a variable interest rate. With an ARM, the initial interest rate is fixed…
What Is a Mortgage? Types, How They Work, and Examples
What Is a Mortgage? A mortgage is a type of loan used to purchase or maintain a home, land, or other types of real estate. The borrower agrees to pay…
Reserve Requirements: A Definition, History, and Example
What Are Reserve Requirements? Reserve requirements are the amount of cash that financial institutions must have, in their vaults or at the closest Federal Reserve bank, in line with deposits…
What is a Distributed Ledger?
Ledgers, the accounting foundation, are as ancient as writing and money. Their medium has been clay, wooden tally sticks (that were a fire hazard), stone, papyrus, and paper. Once computers…
What Is a Certificate of Deposit?
A certificate of deposit (or CD) is considered a type of savings account, but a CD holds your money for a fixed time period in exchange for a higher rate…
Annual Percentage Rate (APR): What It Means and How It Works
What Is Annual Percentage Rate (APR)? Annual percentage rate (APR) refers to the yearly interest generated by a sum that’s charged to borrowers or paid to investors. APR is expressed…
What Is DeFi? Decentralized Finance, Explained
DeFi, short for decentralized finance, is more than just a popular buzzword in cryptocurrency. It’s a concept that is disrupting the centralized financial services model, equalizing access and bringing more…
Do I Need a Hardware Wallet to Store Bitcoin?
What is a Crypto Hardware Wallet? Unlike software wallets, which are vulnerable to security holes and hackers, offline hardware wallets were developed so that you no longer have to trust…
What Do the Federal Reserve Banks Do?
In 1913, the Federal Reserve Act established the Federal Reserve System (FRS), an independent governmental entity that would serve as a central bank to the U.S. government. In addition to…
What Is a Laissez-Faire Economy, and How Does It Work?
What Is Laissez-Faire? Laissez-faire is an economic theory from the 18th century that opposed government intervention in business affairs. The driving principle behind laissez-faire, a French term that translates to…