TL:DR - The Fed Funds Rate is the interest rate banks charge each other for overnight loans, set by the Federal Reserve, and influences overall borrowing costs. Bank rates are the higher interest...
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TL:DR - A bank rate is the interest rate a commercial bank charges its best customers for loans or credit. It's often used as a benchmark for other interest rates in the economy, like mortgages and...
Base Interest Rates (Fed Funds Rate) – Explain Like I’m Five
TL:DR - A base interest rate is the rate set by central banks, like the Federal Reserve, that guides how much banks charge for loans and pay on savings. It helps control the economy by making...
TL:DR - A balance sheet shows what a company owns (assets), owes (liabilities), and what's left for owners (equity). It helps understand a company's financial health at a fixed point in time. What...
Dollar Cost Averaging Vs Averaging Down – Explain Like I’m Five
TL:DR - Dollar Cost Averaging (DCA) involves regularly investing a fixed amount, reducing risk by spreading out purchases over time. Averaging Down means buying more shares of a stock after its price...
TL:DR - Dollar-cost averaging (DCA) is an investment strategy where you regularly invest a fixed amount, regardless of market prices. It reduces risk, simplifies investing, and helps you build wealth...