money & economic basics library

Money and Economics Basics articles provide information about economic fundamentals. Learn about the economy on our Money and Economics Basics Channel.

How Personal Watercraft Work

Featured Article: How Personal Watercraft Work

Personal watercraft such as jet skis are used by millions of Americans each year, but they weren't always that popular. Learn how personal watercraft came to be, how they work and the laws and environmental concerns that govern them. See more »

Can I really trade my dollars in for gold bullion?

Can I really trade my dollars in for gold bullion?

You can trade your dollars in for gold bullion from Fort Knox whenever you want -- right? Maybe not.

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Can tax rebates really prevent an economic downturn?

Can tax rebates really prevent an economic downturn?

Tax rebates are one trick lawmakers and economists use to prevent a recession. But do they knock the economy back on track or merely delay the inevitable?

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Can the government control a stock market crash?

Can the government control a stock market crash?

In a free market economy, the law of supply and demand dominates. But if the economy is in a downward spiral, could the government really save it?

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How Bartering Works

How Bartering Works

Imagine a world without cash or credit cards. You'd barter to get what you need and want. Today, people and businesses are still trading goods and services. But can these cash-free transactions be taxed?

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How Currency Works

How Currency Works

What is currency, exactly? We all know currency is a piece of paper or metal you can trade for stuff you need or want, but who decides what your money is worth? And why does its value fluctuate?

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How Electronic Trading Works

How Electronic Trading Works

Millions of people trade billions of shares of stock every day on a collection of computer systems that are incredibly reliable and, very nearly, inerrant. Learn about the complex world of electronic trading.

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How Exchange Rates Work

How Exchange Rates Work

What exactly is the cost of money? What are the fundamentals of exchanging dollars for other currency? We'll explore these questions, plus give tips for money-changing travelers.

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How Interest Rates Work

How Interest Rates Work

Interest rates are simply the cost of borrowing money. Without them, lenders would have no reason to let you borrow money.

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How IPOs Work

How IPOs Work

Initial public offerings have been around for centuries -- every company with shares that are publicly traded on the stock market had an IPO at one point. Find out what an IPO is and how it makes people rich.

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How NASDAQ IPOs Work

How NASDAQ IPOs Work

Find out what a NASDAQ IPO is and see cool videos from a recent HowStuffWorks trip to this Wall Street wonder.

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How NASDAQs Opening and Closing Cross Works

How NASDAQs Opening and Closing Cross Works

The NASDAQ opening and closing cross process allows NASDAQ to calculate the correct average of a stock price during off-market hours. Read more and watch a video on how this process works.

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How Recessions Work

How Recessions Work

What goes up must come down: Periodic recessions are a natural part of any nation's economic cycle. Who decides when the economy is in recession and on what grounds? What actually constitutes a recession, anyway?

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How the Euro Works

How the Euro Works

Believe it or not, the Euro was the idea of Winston Churchill in 1946, when he suggested the creation of the "United States of Europe."

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How the Fed Works

How the Fed Works

The Fed: It's a very mysterious part of the government. But if you own a house, have a bank account or write checks, the Federal Reserve System affects your life every day.

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How the NASDAQ MarketSite Works

How the NASDAQ MarketSite Works

The NASDAQ MarketSite broadcast studio is an amazing facility that can host dozens of reporters simultaneously and send direct feeds out to all of their separate news organizations. Learn about the technology behind the NASDAQ MarketSite.

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How the NASDAQ Stock Exchange Works

How the NASDAQ Stock Exchange Works

The NASDAQ stock exchange, also known simply as the NASDAQ, is the place where people go to buy and sell shares of stock. How does this bustling business center work?

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How the NASDAQ Times Square Display Works

How the NASDAQ Times Square Display Works

The NASDAQ display in NYC's Times Square is impossible to miss. It's the largest continuous sign on the square and takes up almost 9,000 square feet of display space -- about a quarter of an acre.

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How the New $20 Bill Works

How the New $20 Bill Works

With the introduction of the new $20 bill, the U.S. Treasury has introduced a whole new element to the dollar: color. Learn about the new look of the currency and about the benefits of the new features.

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Recession Quiz

Quiz Corner: Recession Quiz

Bet recession is one word you're getting a little sick of hearing -- especially if you have any money in the markets. But sick of it or not, it's still good to know what's what where your wallet is concerned. So put your money where you mouth is, and take this quiz to find out how much you know about recessions.

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What's the difference between a recession and a depression?

What's the difference between a recession and a depression?

Bleak images from the Great Depression strike fear in the hearts of people who believe that a recession in the United States could cause history to repeat itself. But does recession always lead to depression?

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