Finance Course Online

Inflation/Recession Crunch – inflation is an increase in the ratio of currency and credit to the goods available. In short, the government has "manufactured" excess cash in the system. Moderate inflation "fuel" the economy and helps to maintain full employment. Uncontrolled inflation causes the economy to "heat up" and causes prices to rise. Consumers will therefore save or reduce purchases. This causes recession in the business sector. Inflation is the "silent eater" of our money’s value.

Emergency Crunch – we must spend because a situation, often dangerous, arises suddenly and calls for prompt action.

"The Thing" Crunch – we must get it because it is the "in" thing.

"Get it Now" Crunch – we must get it now, not later.

"Keeping Up" Crunch – we must get it because our neighbor has it.

Save Crunch – a variance of "get it now" crunch. We must get it now because it will give us a discount now than later (during sale).

Easy Credit Crunch – we can get it now, even if we don’t have the ready cash, because we could pay it later.