Credit Score? Definition, Factors, and Ways to Raise It
What Is a Credit Score? A credit score is a three-digit number that rates your creditworthiness. FICO scores range from 300 to 850. The higher the score, the more likely…
What Is FDIC Insurance and What Are the Coverage Limits?
With FDIC insurance, the federal government protects your money held in a bank if your bank fails. But there are coverage limits. Key takeaways about FDIC insurance Banks are safe…
Collateral Definition, Its Types, & Examples
What Is Collateral? Collateral in the financial world is a valuable asset that a borrower pledges as security for a loan. For example, when a homebuyer obtains a mortgage, the…
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…
Cryptocurrency Rules & Regulations You Should Know
Over the past decade, the cryptocurrency market has significantly grown in size and popularity worldwide. As demand for Bitcoin and other cryptocurrencies increases, each country has been making legal decisions…
The 2007–2008 Financial Crisis in Review
The 2007-2008 Financial Crisis In Review The financial crisis of 2007–2008 was years in the making. By the summer of 2007, financial markets worldwide showed signs that the reckoning was…
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 Bear Market? Definition and How to Invest During One
When assets plummet 20% from recent highs, Bear markets are among the scariest market events you’ll encounter. But long-term investors can stay the course. The words “bear market” strike fear…
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…