Posts Tagged ‘Rate’

The Value of a Dollar-It’s more than just 100 Cents

Wednesday, March 4th, 2009

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The value of our dollar depends strongly on the values of the dollars of other countries, exchange rates and interest rates. The interest rate in the United States from the Federal Reserve dropped to 4.75% in September 2007. Other banks around the world did not follow when this happened. This means that the European Central Bank (the home of the euro) has a higher interest rate right now than the Federal Reserve. Basically holding a Euro in your hand would be worth more in interest than holding a dollar in your hand. At this time in the dollar’s life, which would you choose?

Because of this difference in interest rate, other countries around the world are thinking like you and I are. They’re diversifying their holdings from dollars to Eruos and even British pounds for this same reason. In a supply and demand aspect, this situation causes there to be a large supply of dollars making them worth less. This loss in value caused the oil industry to charge higher prices, hence the skyrocket this past summer. Other countries don’t want the dollars they get for oil so they exchange them for Euros. It’s an endless cycle that has only gotten worse, despite understanding the root of the problem.

The dollar dropping is a double edged sword. On one hand, many manufacturers want to produce their products in factories in the United States, bringing us jobs. The reason manufacturers want to bring their factories here because it’s so cheap to run because of the low dollar value yet they can sell them overseas for the value of the Euro. On the other hand, the low dollar causes inflation. We know how bad that can be. Everything becomes more expensive in order to make up for the dollar value going down. Companies still want to make a profit on their goods so the cost of everything rises.

In order to get bonds to sell, they will be cheaper and have higher interest rates. These interest rates correlate to mortgage rates which don’t seem to be dropping anytime soon. Our weak dollar is also scaring away foreign investors who are now afraid to own stock in US companies. Foreign nations who have a lot invested in the dollar have the ability to cause a nuclear financial meltdown for the United States. They could easily exchange their dollars for something else, releasing our money into circulation, causing the value to plummet.

All in all, yes the dollar is worth 20 times less than it was in 1913 but a year or two ago, we knew that and we were used to it. Right now, on top of the 20 times less, it is losing more value in front of our eyes. I’m no one to give financial information but now that you know about the value of the U.S. dollar, just watch what you do with it. Buy and sell carefully because this is a delicate time for our economy.

How and Why to Start a Savings Account

Tuesday, March 3rd, 2009

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Put your money where the bank is.


Get that cash out from under your mattress and your bra is not a good hiding spot. I’ve seen some funny and innovative places that people have hidden their cash but none of those places is safer than the bank. Does your mattress doesn’t pay you to put money under it? Well a bank does.

First things first, you want to find the bank that’s for you. If you’re a walk-in type of person, you’ll want a bank that has a branch in your area. If you’re internet savvy, you might want a bank where you can control everything online. Interest rate is also a big factor you should take into consideration when choosing a bank. The higher the interest rate, the more money you will make putting your money in that bank. Some banks require or “suggest” you start your account with a certain amount. This could be anywhere from $500 to $5000 to much more. Some suggest you keep a certain minimum balance your account. These are all things you want to know before you start putting your money anywhere and before you sign anything!

Next you should decide if you’re saving towards a purpose (like a home or car) or just to save for your future. Something like this can make a difference to the banker when you go to open your account. Decide on an amount from every paycheck that will go into your account automatically. Try not to deviate from this amount. A general rule is 10% of the money you bring in. You could also set up a change jar and save up extra change and dollars in between paychecks. You’ll be AMAZED how much change adds up. Once you’ve chosen your bank and you’re familiar with that bank’s practices, policies and interest rate go ahead and sign up. If you do this online you may have to send in a form with your signature or some official documents.

Why in the world would you want to start a savings account to begin with? Isn’t a checking account enough? Isn’t my pocket enough? Well, to tell the truth, the easier the access you have to your money, the more likely you are to spend it. That’s just a simple fact. You need to have some backup money that you have access to but that isn’t the easiest, first route you go through to pay for something. You need a savings account to save for an emergency. In case your car breaks down or you have something unexpected comes up from across the country. You don’t want to have to pull out a credit card if you don’t have to. Save for retirement, save for college, save up for a vacation. No matter what it’s for, even just a rainy day, even just a dollar here and there, SAVE your money. You’ll thank me later.

The Rate Of The United States Dollar

Tuesday, November 11th, 2008

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The United States Dollar is the single most recognized paper currency in the world. Not only does support allrate united states dollar major transactions, whether domestically and internationally, but it is also the most used and preferred currency in the business world today, internationally. Understanding and knowing the value and the rate of the United States Dollar against other major foreign currencies and the impacts it has on the financial markets can do a lot for those who have or are planning to invest in the international financial markets. The rate of the United States dollar has and will continue to be the fundamental basis for many other international currencies, for many years to come.

The rate of the United Dollars is also the most telling indicator in gauging the status of the United States economy. This is because by simply knowing its rate, one will also be able to compare the strength of the economy of the United States against the economies of the nations and countries around the world. Because the international currency markets are based on the simple practice of trading with multiple different currencies, knowing the rate of the United States dollar will give an extra edge against the odds of making a profit when investing in this form of market. This is because the currency market is the single largest market in the world and the the United States dollar, given its vast use and utilization, plays a huge and significant role in ensuring a constant and lucrative worth in gain upon investment.

united states dollarThe rate of the United States dollar will also determine many other things, like the price of groceries or clothing, to spending on vacations overseas through exchange rates, to the price of gas and utilities. How much value it carries depends solely on the economy of the United States. The United States Dollar is also kept as a reserve currency amongst nations and countries, all around the world, which gives it that added influence in determining the strength of the global economy. It is also used as the major form of payment for raw materials, especially in the energy sector, making it even that more indispensable. Knowing the rate of the United States dollar will also tremendously help in analyzing the risk of investing in the forex market, so being able to tell how much the dollar is worth will allow investors to identify where to best trade their investments to allow a profitable income to be made from the international currency exchange markets.

It is safe to conclude that the rate of the United States dollar is the single driving force in the currency and financial markets today, and while other international currencies may influence the markets to a certain degree, the rate of the United States dollar is still the most important as it is considered the most credible and safest investment in term of currency trading. There are so many ways to learn about the rate of the United States dollar and its correlation with the international currency market and the internet is one of them.