Money is any item or verifiable record that is generally accepted as payment for goods and services and repayment of
debts in a particular country or socio-economic context. The main functions of money are distinguished as: a medium of
exchange; a unit of account; a store of value; and, sometimes, a standard of deferred payment. Any item or verifiable
record that fulfills these functions can be considered as money.
Money is historically an emergent market phenomenon establishing a commodity money, but nearly all contemporary money
systems are based on fiat money. Fiat money, like any check or note of debt, is without use value as a physical commodity.
It derives its value by being declared by a government to be legal tender; that is, it must be accepted as a form of payment
within the boundaries of the country, for "all debts, public and private".
The money supply of a country consists of currency (banknotes and coins) and, depending on the particular definition
used, one or more types of bank money (the balances held in checking accounts, savings accounts, and other types of bank
accounts). Bank money, which consists only of records (mostly computerized in modern banking), forms by far the largest part of
broad money in developed countries.
A bank is a financial institution that accepts deposits from the public and creates credit. Lending activities can be
performed either directly or indirectly through capital markets. Due to their importance in the financial stability of a
country, banks are highly regulated in most countries. Most nations have institutionalized a system known as fractional reserve
banking under which banks hold liquid assets equal to only a portion of their current liabilities. In addition to other
regulations intended to ensure liquidity, banks are generally subject to minimum capital requirements based on an international
set of capital standards, known as the Basel Accords.
Banking in its modern sense evolved in the 14th century in the prosperous cities of Renaissance Italy but in many ways
was a continuation of ideas and concepts of credit and lending that had their roots in the ancient world. In the history of
banking, a number of banking dynasties – notably, the Medicis, the Fuggers, the Welsers, the Berenbergs and the Rothschilds
– have played a central role over many centuries. The oldest existing retail bank is Banca Monte dei Paschi di Siena, while the
oldest existing merchant bank is Berenberg Bank.
Banking began with the first prototype banks of merchants of the ancient world, which made grain loans to farmers and
traders who carried goods between cities and this system is known as barter system.This began around 2000 BC in Assyria and
Babylonia. Later, in ancient Greece and during the Roman Empire, lenders based in temples made loans and added two important
innovations: they accepted deposits and changed money. Archaeology from this period in ancient China and India also shows
evidence of money lending activity.
The origins of modern banking can be traced to medieval and early Renaissance Italy, to the rich cities in the centre
and north like Florence, Lucca, Siena, Venice and Genoa. The Bardi and Peruzzi families dominated banking in 14th-century
Florence, establishing branches in many other parts of Europe. One of the most famous Italian banks was the Medici Bank, set
up by Giovanni di Bicci de' Medici in 1397. The earliest known state deposit bank, Banco di San Giorgio (Bank of St. George),
was founded in 1407 at Genoa, Italy.
Modern banking practices, including fractional reserve banking and the issue of banknotes, emerged in the 17th and 18th
centuries. Merchants started to store their gold with the goldsmiths of London, who possessed private vaults, and charged a fee
for that service. In exchange for each deposit of precious metal, the goldsmiths issued receipts certifying the quantity and
purity of the metal they held as a bailee; these receipts could not be assigned, only the original depositor could collect the
Gradually the goldsmiths began to lend the money out on behalf of the depositor, which led to the development of modern
banking practices; promissory notes (which evolved into banknotes) were issued for money deposited as a loan to the
goldsmith. The goldsmith paid interest on these deposits. Since the promissory notes were payable on demand, and the
advances (loans) to the goldsmith's customers were repayable over a longer time period, this was an early form of fractional
reserve banking. The promissory notes developed into an assignable instrument which could circulate as a safe and convenient
form of money backed by the goldsmith's promise to pay, allowing goldsmiths to advance loans with little risk of default.
Thus, the goldsmiths of London became the forerunners of banking by creating new money based on credit.
The Bank of England was the first to begin the permanent issue of banknotes, in 1695. The Royal Bank of Scotland
established the first overdraft facility in 1728. By the beginning of the 19th century a bankers' clearing house was
established in London to allow multiple banks to clear transactions. The Rothschilds pioneered international finance on a large
scale, financing the purchase of the Suez canal for the British government.
Debt is money owed by one party, the borrower or debtor, to a second party, the lender or creditor. The borrower may be
a sovereign state or country, local government, company, or an individual. The lender may be a bank, credit card company, payday
loan provider, or an individual. Debt is generally subject to contractual terms regarding the amount and timing of repayments of
principal and interest. A simple way to understand interest is to see it as the "rent" a person owes on money that they have
borrowed, to the bank from which they borrowed the money. Loans, bonds, notes, and mortgages are all types of debt. The term can
also be used metaphorically to cover moral obligations and other interactions not based on economic value. For example, in
Western cultures, a person who has been helped by a second person is sometimes said to owe a "debt of gratitude" to the second
Interest is the fee paid by the borrower to the lender. Interest is calculated as a percentage of the outstanding
principal, which percentage is known as an interest rate, and is generally paid periodically at intervals, such as monthly or
Interest rates may be fixed or floating. In floating-rate structures, the rate of interest that the borrower pays during
each time period is tied to a benchmark such as LIBOR or, in the case of inflation-indexed bonds, inflation.
There are many different conventions for calculating interest. Depending on the terms of the debt, compound interest may
accumulate at a specific interval. In addition, different day count conventions exist, for example, sometimes each month is
considered to have exactly thirty days, such that the interest payment due is the same in each calendar month. The annual
percentage rate (APR) is a standardized way to calculate and compare interest rates on an annual basis. Quoting interest rates
using APR is required by regulation for most loans to individuals in the United States and United Kingdom.
For some loans, the amount actually loaned to the debtor is less than the principal sum to be repaid. This may be
because upfront fees or points are charged, or because the loan has been structured to be sharia-compliant. The additional
principal due at the end of the term has the same economic effect as a higher interest rate. This is sometimes referred to as a
banker's dozen, a play on "baker's dozen" – owe twelve (a dozen), receive a loan of eleven (a banker's dozen). Note that the
effective interest rate is not equal to the discount: if one borrows $10 and must repay $11, then this is ($11–$10)/$10 = 10
percent interest; however, if one borrows $9 and must repay $10, then this is ($10–$9)/$9 = 11-1/9 percent interest.
There are three main ways repayment may be structured: the entire principal balance may be due at the maturity of the
loan; the entire principal balance may be amortized over the term of the loan; or the loan may partially amortized during its
term, with the remaining principal due as a "balloon payment" at maturity. Amortization structures are common in mortgages and
Some argue against debt as an instrument and institution, on a personal, family, social, corporate and governmental
level. Islam forbids lending with interest even today. In hard times, the cost of servicing debt can grow beyond the debtor's
ability to pay, due to either external events (income loss) or internal difficulties (poor management of resources).
Debt will increase through time if it is not repaid faster than it grows through interest. This effect may be termed
usury, while the term "usury" in other contexts refers only to an excessive rate of interest, in excess of a reasonable profit
for the risk accepted.
In international legal thought, odious debt is debt that is incurred by a regime for purposes that do not serve the
interest of the state. Such debts are thus considered by this doctrine to be personal debts of the regime that incurred them
and not debts of the state. International Third World debt has reached the scale that many economists are convinced that debt
relief or debt cancellation is the only way to restore global equity in relations with the developing nations.
Excessive debt accumulation has been blamed for exacerbating economic problems. For example, before the Great
Depression, the debt-to-GDP ratio was very high. Economic agents were heavily indebted. This excess of debt, equivalent to
excessive expectations on future returns, accompanied asset bubbles on the stock markets. When expectations corrected, deflation
and a credit crunch followed. Deflation effectively made debt more expensive and, as Fisher explained, this reinforced deflation
again, because, in order to reduce their debt level, economic agents reduced their consumption and investment. The reduction in
demand reduced business activity and caused further unemployment. In a more direct sense, more bankruptcies also occurred due
both to increased debt cost caused by deflation and the reduced demand.
At the household level, debts can also have detrimental effects — particularly when households make spending decisions
assuming income will increase, or remain stable, in years to come. When households take on credit based on this assumption, life
events can easily change indebtedness into over-indebtedness. Such life events include unexpected unemployment, relationship
break-up, leaving the parental home, business failure, illness, or home repairs. Over-indebtedness has severe social
consequences, such as financial hardship, poor physical and mental health, family stress, stigma, difficulty obtaining
employment, exclusion from basic financial services (European Commission, 2009), work accidents and industrial disease, a strain
on social relations (Carpentier and Van den Bosch, 2008), absenteeism at work and lack of organisational commitment (Kim et al.,
2003), feeling of insecurity, and relational tensions.
A Guaranteed Investment Certificate (GIC) is a Canadian investment that offers a guaranteed rate of return over a fixed
period of time, most commonly issued by trust companies or banks. Due to its low risk profile, the return is generally less
than other investments such as stocks, bonds, or mutual funds. It is similar to a time or term deposit as known in other
The rate of return on a GIC varies depending on the various factors, such as the length of the term and specified
interest rates from the Bank of Canada. At the time of purchase, the rate is higher than the interest on a savings account. The
return on the investment will be low if the savings interest rate becomes higher than the GIC rate of return and will be high
The principal amount is not at risk unless the bank defaults. The guarantee for GICs is provided by the Canada Deposit
Insurance Corporation (CDIC) up to a maximum of $100,000 (principal and interest combined), as long as the issuing financial
institution is a CDIC member and the original term to maturity is five years or less.
Market Growth GICs
The Market Growth GICs or Market Stock-Indexed GICs have their interest rates determined by the rate of growth of a
specific stock market (such as the TSX or S&P 500). For example; if the TSX has a market growth increase of 30% in 3 years,
beginning at the same point in time the GIC was issued, the GIC will return with an interest of 30%. However, unlike other GICs
there is always a possibility that the market could perform poorly, having even no growth at all, in which the interest rate
could return at 0%. Just like regular GICs, Market Growth GICs are extremely low-risk; the capital is guaranteed to remain
intact (though the purchasing power is not) even if the stock market shrinks.
All Market Growth GICs have a maximum return. For example; if the GIC has a maximum return of 25% over 3 years, and the
TSX has a market growth increase of 30% in 3 years, the GIC will return with an interest rate of only 25%. Maximum returns will
typically range from 7% to 15% per year, depending on the market in which the GIC is invested and the length of the investment
ITWorldcanada.com is the leading Canadian online resource for IT professionals working in medium to large enterprises.
Representing the entire spectrum of enterprise IT, the site provides news and information services that aid in achieving
success in the Canadian IT market.
IT World Canada creates daily news content, produces a daily newsletter and features IT professionals who blog on topics
of industry interest.
Welcome to IT World Canada
Since its launch in 1984, IT World Canada has become the online information resource of choice for Canadian IT
For almost three decades IT World Canada has been building solid relationships with Canada’s IT professionals by
delivering timely, incisive information that helps them succeed in their jobs. Today, more than 75,000 IT executives and
professionals – representing 70 per cent of the buying power in Canada – turn to IT World Canada for the information they
Over the past few years, we have transformed our business from a traditional print publisher of the top IT titles in
Canada to a multimedia information provider with industry-leading digital titles that include CanadianCIO.com, IT Business.ca,
ComputingCanada.com, ComputerDealerNews.com and Directioninformatique.com.
Whether it’s newsletters from our content-rich portals, wireless access through our mobile edition, targeted events
bringing together the best and brightest IT players in Canada, or our world-renowned IT websites, we deliver a global view of IT
with a Canadian perspective – anywhere, any time.
More than any other IT information publisher, we have invested time and effort in getting to know our readers. We have
painstakingly maintained our subscriber database over the years, building on our core knowledge of who and where they are, what
IT technology they’re using and the hot topics that keep them up at night.
We know the specific interests and information requirements of our readers, as defined and refined by them on an ongoing
basis. Our significant investment in subscriber data management helps IT World Canada develop the targeted, focused content they
seek. Our state-of-the-art technologies allow us to deliver this information directly to our subscribers using whichever vehicle
IT World Canada is a privately-owned company and the Canadian affiliate of International Data Group (IDG), the world’s
largest IT information provider. IDG publishes more than 300 publications worldwide. IDG also provides IT market analysis
through 49 offices in 85 countries worldwide. One hundred million people read one or more IDG publications each month.
Industry: I.T. STAFF/TECHNICAL POSITIONS
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Job Title: Web developer
PayPal Holdings, Inc. is an American company operating a worldwide online payments system that supports online money
transfers and serves as an electronic alternative to traditional paper methods like checks and money orders. PayPal is one of
the world's largest Internet payment companies. The company operates as a payment processor for online vendors, auction
sites and other commercial users, for which it charges a fee.
Established in 1998, PayPal had its initial public offering in 2002, and became a wholly owned subsidiary of eBay
later that year.
In 2014, eBay announced plans to spin-off PayPal into an independent company by mid-2015 and this was completed on
July 18, 2015.
PayPal was established in December 1998 as Confinity, a company that developed security software for handheld
devices founded by Max Levchin, Peter Thiel, Luke Nosek and Ken Howery. PayPal was developed and launched as a
money transfer service at Confinity in 1999, funded by John Malloy from BlueRun Ventures.
In March 2000, Confinity merged with X.com, an online banking company founded by Elon Musk. Musk was optimistic
about the future success of the money transfer business Confinity was developing. Musk and then-president and CEO of X.com,
Bill Harris, disagreed on this point and Harris left the company in May 2000. In October of that year, Musk made the
decision that X.com would terminate its other Internet banking operations and focus on the PayPal money service. The X.com
company was then renamed PayPal in 2001, and expanded rapidly throughout the year until company executives decided to take
PayPal public in 2002. Paypal's IPO listed under the ticker PYPL at $13 per share and ended up generating over $61
A tax (from the Latin taxo) is a mandatory financial charge or some other type of levy imposed upon a taxpayer (an
individual or other legal entity) by a governmental organization in order to fund various public expenditures. A failure to
pay, or evasion of or resistance to taxation, is punishable by law. Taxes consist of direct or indirect taxes and may be paid in
money or as its labour equivalent. Most countries have a tax system in place to pay for public/common/agreed national needs and
government functions: some levy a flat percentage rate of taxation on personal annual income, some on a scale based on annual
income amounts, and some countries impose almost no taxation at all, or a very low tax rate for a certain area of taxation. Some
countries charge a tax both on corporate income and dividends; this is often referred to as double taxation as the individual
shareholder(s) receiving this payment from the company will also be levied some tax on that personal income.
Purposes and effects
The levying of taxes aims to raise revenue to fund governing and/or to alter prices in order to affect demand. States
and their functional equivalents throughout history have used money provided by taxation to carry out many functions. Some of
these include expenditures on economic infrastructure (roads, public transportation, sanitation, legal systems, public safety,
education, health-care systems), military, scientific research, culture and the arts, public works, distribution, data
collection and dissemination, public insurance, and the operation of government itself. A government's ability to raise taxes is
called its fiscal capacity.
When expenditures exceed tax revenue, a government accumulates debt. A portion of taxes may be used to service past
debts. Governments also use taxes to fund welfare and public services. These services can include education systems, pensions
for the elderly, unemployment benefits, and public transportation. Energy, water and waste management systems are also common
A tax effectively changes relative prices of products. Therefore, most[quantify] economists, especially neoclassical
economists, argue that taxation creates market distortion and results in economic inefficiency unless there are (positive or
negative) externalities associated with the activities that are taxed that need to be internalized to reach an efficient market
outcome. They have therefore sought to identify the kind of tax system that would minimize this distortion. Recent
scholarship suggests that in the United States of America, the federal government effectively taxes investments in higher
education more heavily than it subsidizes higher education, thereby contributing to a shortage of skilled workers and unusually
high differences in pre-tax earnings between highly educated and less-educated workers.
Governments use different kinds of taxes and vary the tax rates. They do this in order to distribute the tax burden
among individuals or classes of the population involved in taxable activities, such as the business sector, or to redistribute
resources between individuals or classes in the population. Historically, taxes on the poor supported the nobility;
modern social-security systems aim to support the poor, the disabled, or the retired by taxes on those who are still working.
In addition, taxes are applied to fund foreign aid and military ventures, to influence the macroeconomic performance of the
economy (a government's strategy for doing this is called its fiscal policy; see also tax exemption), or to modify patterns of
consumption or employment within an economy, by making some classes of transaction more or less attractive.
A state's tax system often[quantify] reflects its communal values and the values of those in current political power. To
create a system of taxation, a state must make choices regarding the distribution of the tax burden—who will pay taxes and how
much they will pay—and how the taxes collected will be spent. In democratic nations where the public elects those in charge of
establishing or administering the tax system, these choices reflect the type of community that the public wishes to create. In
countries where the public does not have a significant amount of influence over the system of taxation, that system may reflect
more closely the values of those in power.
All large businesses incur administrative costs in the process of delivering revenue collected from customers to the
suppliers of the goods or services being purchased. Taxation is no different; the resource collected from the public through
taxation is always greater than the amount which can be used by the government. The difference is called the
compliance cost and includes (for example) the labour cost and other expenses incurred in complying with tax laws and rules. The
collection of a tax in order to spend it on a specified purpose, for example collecting a tax on alcohol to pay directly for
alcoholism-rehabilitation centres, is called hypothecation. Finance ministers often dislike this practice, since it reduces
their freedom of action. Some economic theorists regard hypothecation as intellectually dishonest since, in reality, money is
fungible. Furthermore, it often happens that taxes or excises initially levied to fund some specific government programs are
then later diverted to the government general fund. In some cases, such taxes are collected in fundamentally inefficient ways,
for example, though highway tolls.
Since governments also resolve commercial disputes, especially in countries with common law, similar arguments are
sometimes used to justify a sales tax or value added tax. Some (libertarians, for example) portray most or all forms of taxes
as immoral due to their involuntary (and therefore eventually coercive/violent) nature. The most extreme anti-tax view,
anarcho-capitalism, holds that all social services should be voluntarily bought by the person(s) using them.
A time deposit or term deposit (also known as a certificate of deposit in the United States, is a
deposit with a specified period of maturity and earns interest. It is a money deposit at a banking institution that cannot be
withdrawn for a specific term or period of time (unless a penalty is paid). When the term is over it can be
withdrawn or it can be held for another term. Generally speaking, the longer the term the better the yield on the money. In its
strict sense, certificate deposit is different from that of time deposit in terms of its negotiability: CDs are negotiable and
can be rediscounted when the holder needs some liquidity, while time deposits must be kept until maturity.
The opposite, sometimes known as a sight deposit or "on call" deposit, can be withdrawn at any time, without any notice
or penalty: e.g., money deposited in a checking account in a bank.
The rate of return is higher than for savings accounts because the requirement that the deposit be held for a
prespecified term gives the bank the ability to invest it in a higher-gain financial product class. However, the return on a
time deposit is generally lower than the long-term average of that of investments in riskier products like stocks or bonds. Some
banks offer market-linked time deposit accounts which offer potentially higher returns while guaranteeing principal.
A time deposit is an interest-bearing bank deposit that has a specified date of maturity. A deposit of funds in a
savings institution is made under an agreement stipulating that (a) the funds must be kept on deposit for a stated period of
time, or (b) the institution may require a minimum period of notification before a withdrawal is made.
"Small" time deposits are defined in the U.S. as those under $100,000, while "large" ones are $100,000 or greater in
size. The term "jumbo CD" is commonly used in the United States to refer to large time deposits.
In the U.S., banks are not subject to a reserve requirement against their time deposit holdings.
Today IS the very first day of the rest of your life.