This reference for students in high school and up explains how the economy works and how factors such as interest rates and inflation impact personal wealth. It offers practical suggestions for developing a financial plan, and describes the risks and rewards associated with bank accounts, stock bonds, and mutual funds. A section on how the economy works describes basic principles governing US and global economies, and explains economic factors that influence interest rates, inflation, and consumer prices. Later chapters explain different types of investment choices and provide tips for understanding financial documents and working with financial industry professionals. The book also cautions against scams and frauds, and warns against the hazards associated with managing money in an online environment. Boxes on quick tips and key facts are included. There is also a directory of savings and investment organizations. Annotation ©2009 Book News, Inc., Portland, OR (booknews.com) Distributed by Syndetic Solutions, Inc.

Preface	p. ix
Part 1 How The Economy Works
Chapter 1 The History Of Money	p. 3
Chapter 2 The American Experience With Money	p. 7
Chapter 3 The Federal Reserve System And How It Affects You	p. 23
Chapter 4 Small Business And Corporations In The U.S. Economy	p. 33
Chapter 5 Strong Dollar, Weak Dollar: Foreign Exchange Rates And The U.S. Economy	p. 41
Chapter 6 What Determines Interest Rates?	p. 53
Chapter 7 Inflation And The Consumer Price Index	p. 71
Part 2 Keys To Wealth Development
Chapter 8 Develop A Financial Plan	p. 81
Chapter 9 Investment Choices And Risk Tolerance	p. 89
Chapter 10 Advice For Investing Wisely	p. 99
Chapter 11 A Beginner's Guide To Asset Allocation, Diversification, And Rebalancing	p. 109
Chapter 12 A Beginner's Guide To Financial Statements	p. 119
Chapter 13 Working With Financial Professionals	p. 131
Chapter 14 Understanding Securities Analyst Recommendations	p. 143
Chapter 15 How To Avoid The Most Common Investment Scams	p. 151
Chapter 16 Beware Of Online Perils And Internet Fraud	p. 161
Part 3 Banks And Bonds
Chapter 17 Basic Facts About Banks And Banking	p. 177
Chapter 18 Internet And High-Tech Banking Options	p. 189
Chapter 19 Pros And Cons Of Different Savings Options	p. 203
Chapter 20 Account Choices To Consider For Saving Money	p. 211
Chapter 21 A Guide To Deposit Insurance Coverage	p. 215
Chapter 22 What You Should Know About Certificates Of Deposit (CDs)	p. 227
Chapter 23 What Are Bonds?	p. 233
Chapter 24 Understanding Savings Bonds	p. 243
Chapter 25 Treasury Bonds And Other Treasury Instruments	p. 255
Chapter 26 Municipal And Corporate Bonds	p. 263
Part 4 Stocks And Mutual Funds
Chapter 27 Understanding Stocks	p. 275
Chapter 28 How The Stock Market Works	p. 283
Chapter 29 Types Of Investment Companies	p. 295
Chapter 30 Understanding Mutual Funds	p. 303
Chapter 31 How Mutual Fund And Other Investment Companies Operate	p. 319
Chapter 32 Exchange Traded Funds And Index Funds	p. 333
Chapter 33 What Is A Hedge Fund?	p. 343
Chapter 34 What To Expect When You Invest In Stocks	p. 347
Chapter 35 What Happens When You Place An Order To Buy Or Sell A Stock?	p. 355
Chapter 36 What Are Direct Investment Plans?	p. 361
Chapter 37 Investing In Foreign Stocks	p. 369
Chapter 38 Microcap Stocks: Among The Most Risky	p. 377
Chapter 39 Day Trading: Your Dollars At Risk	p. 385
Part 5 If You Need More Information
Chapter 40 Directory Of Savings And Investment Organizations	p. 391
Chapter 41 Additional Reading About Saving And Investing	p. 399
Index	p. 407

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