Archive for the ‘Levels’ Category

What is the gray market?

Thursday, December 17th, 2009

Everyone has heard of the black market (at least in movies), but what is the gray market? Unlike the black market, the gray market is not technically illegal, but it is often unauthorized. Instead it’s a kind of loophole, as it involves distributing items in a way that the original manufacturer would not have wanted.

Let’s use cell phones as an example. An individual or private company buys a bunch of BlackBerrys at retail, wholesale, or discounted prices, and then resells the phones at a higher price. Usually, this new price is cheaper than what your local AT&T store will sell a BlackBerry for, so customers are more likely to spend their BlackBerry dollars there.

How long does that dollar bill stay in circulation?

Thursday, December 17th, 2009

With all the wear and tear that those bills go through, it’s surprising that they stay together as long as they do. You can only stuff them all wrinkled-up into your pockets so many times before they just give up. The Fed knows that we aren’t too careful with its bills and so they routinely collect them from banks for “processing” – shredding and disposal. The Fed also ensures that new money makes it back into circulation to replace the worn out stuff. It makes sense because you wouldn’t want your money constantly falling apart on you.

Since the Fed keeps track of all the worn-out money it’s disposing of, the average life span of dollar bills is easy for them to figure out. According to federalreserve.gov, this is the life expectancy for each type of bill:

  • $1 – 21 months
  • $5 – 16 months
  • $10 – 18 months
  • $20 – 24 months
  • $50 – 55 months
  • $100 – 89 months

The list above makes sense: the more used a bill is, the more worn-out it gets.

Why do you have to declare what you bought when you go through customs?

Thursday, December 17th, 2009

Customs can be confusing, tiresome, and tedious – and that’s before you reach the hour-long line at JFK. Before getting off the plane (or crossing the border from Mexico) you’ll have to fill out a customs form detailing exactly what you bought and how much it cost. What’s the point though? And why does the government care?

The U.S. government isn’t actually interested in whether you are bringing jeans or a pair of shorts back – it cares that you are bringing something back. Just like people can’t freely enter the country, there are also laws governing which items can be brought back. Items already illegal in the U.S. (like Cuban cigars) are obviously banned, but the government also looks at the value of your purchases. In most situations, if the total dollar value of your items is above $800, there will be a duty (tax amount) assessed on that extra value. If you purchased $923 in clothes, you will only be taxed on $123 and not the full amount. It may seem like the government is making you pay unnecessarily, but they’re actually cutting you a break.

When you buy something in the U.S., no matter how much it costs, you will also be paying a tax on the good. When you’re at customs, you actually are being allowed $800 of tax-free goods – that’s a pretty good deal. Above that amount, the government is only collecting what it normally would receive had you been shopping in the U.S.

Philanthropic Committed Funds are…

Thursday, December 17th, 2009

Committed funds are money that a grantmaker has pledged to a nonprofit, but has yet to pay.

Program Cost is…

Thursday, December 17th, 2009

We’re not talking about printing the glossy pamphlets with head-shots of your favorite Broadway actors here. For the purposes of TILE, “program cost” refers to the cost of all the work a charity or nonprofit actually does to try to make the world a better place – as opposed to the costs of its fundraising and administrative activities. Program activities for a health-focused nonprofit might include administering medicine or doing research on a rare disease – throwing a benefit gala and sweeping up the office of headquarters would be considered administrative or fundraising costs.

A Community is…

Tuesday, December 15th, 2009

A community is a group of people with shared interests. Community can refer to a physical neighborhood; it can also describe other types of groups – like the “investment community” or even the “TILE community” – that share interests, values and concerns, and work together to further common goals.

A Refugee is…

Tuesday, December 15th, 2009

A refugee is an individual who has been forced to flee his or her home country as a result of war, persecution, or natural disaster.

A Grant Evaluation is…

Tuesday, December 15th, 2009

A grant evaluation is a critical examination of whether a grant was used to achieve its stated goal.

Human Rights are…

Monday, December 7th, 2009

Human rights are those rights to which every human being on Earth is entitled, including the right to life and freedom from violence, enslavement, or other types of abuse. Many organizations, including governments and charities, fight to secure human rights for people around the world.

Margin is…

Monday, December 7th, 2009

Margin is the difference between the market value of a stock and the loan a broker makes to cover the purchase of that stock. When someone buys a stock “on margin,” they pay for a certain percentage of the purchase and their brokerage “covers” the rest.