What's what in finances, XL Edition: Copyright, Interest Rate & Hyperinflation

What's what in finances, XL Edition! Today we will talk about copyright, interest rate and hyperinflation.

HYPERINFLATION

This is inflation that is rapid or out of control. It usually only occurs during wars or during severe political instability. Hyperinflation is a continuous rise in the price level, which makes it impossible for people to save money, because of its constant loss of value. Prices increase as the currency loses its real value so the population has a clear reduction in its monetary wealth.

It affects the companies and business capital, and even our personal own, because it implies its decrease and loss in a considerable way. This is one of the economy's most feared enemies.

INTEREST RATE

Interest rate is the percentage of the face value of a bond or the balance in a deposit account that you receive as income on your investment. If you multiply the interest rate by the face value or balance, you find the annual amount you receive.

For example, if you buy a bond with a face value of $1,000 with a 6% interest rate, you’ll receive $60 a year. Similarly, the percentage of principal you pay for the use of borrowed money is the loan’s interest rate.

If there are no other costs associated with borrowing the money, the interest rate is the same as the annual percentage rate (APR).

COPYRIGHT

The exclusive legal right, owned by the individual or group who created a work, or by an individual or group assigned by the originator, to use certain material and to allow others the right to use the material.

Copyright law gives creators of original material the exclusive right to further use and duplicate that material for a given amount of time, at which point the copyrighted item becomes public domain.

When someone creates a product that is viewed as original and that required significant mental activity to create, this product becomes an intellectual property that must be protected from unauthorized duplication. Examples of unique creations include computer software, art, poetry, graphic designs, musical lyrics and compositions, novels, film, original architectural designs, website content, and others. One safeguard that can be used to legally protect an original creation is copyright.

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