Average Balance

  

Categories: Banking, Metrics

Each day your bank closes its books and you earns a few pennies' interest on the 18 grand you have in your savings account (good for you!). In order to earn the free set of Avengers-themed steak knives at the end of the year, you have to maintain an AVERAGE BALANCE of at least $15,000. There are 20 business days in the month this month and as long as your average balance remains above that level, then bully for you - you get the knives.

Figuring average balance is pretty easy. Add up the closing balance for each day and divide by the number of days you are looking at (in this case the 20 business days in the month) and you get the average. We know it might take a minute to flash back to junior high math, but you'll figure it out...

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Finance: What is Balance of Trade?14 Views

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Finance a la shmoop... what is balance of trade...up, down, up, down yeah all right [Squirrels riding a see-saw]

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think of balance of trade the same way you would think of that seesaw in your

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schoolyard instead of the big-boned third-grader

00:17

weighing in against the you know waiting to grow kindergartner when it comes to [Ship sailing out of harbor]

00:21

international economies and the goods they buy and sell from into each other

00:25

we have exports this guy and imports this guy if two countries have a balance

00:30

in trade well then the financial weight on this seesaw thing here is even the

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three future NFL linemen weigh about the same as eleven future tax auditors yeah [Linemen players and tax auditors in a see-saw]

00:41

but that's rarely the case when countries trade among each other

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and if you're on the seesaw you want to be heavy like fat with feet firmly

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planted on the ground where you are exporting or selling to another country [Goods travelling to foreign countries]

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a whole lot more stuff than you're importing what you want is to be

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collecting boatloads of their currency or oil or velcro kilts from Scotland and

01:04

as you capture more and more of their trade or wealth [Wealth sucked into the US]

01:08

the powerful imbalanced one well that'd be you here you get to have more and

01:13

more influence on them and the world they live in is there a way to gain this

01:18

system cheat? well sorta yeah politicians and governments get very nervous when

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the balance of trade is not in their favor and they have the ability to pile [Imports and exports pile on a see-saw]

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a bunch of books on their side of the seesaw to help their skinny accountants

01:31

compete better how do they do this magic you ask okay yeah we know you didn't ask

01:35

but we'll tell you anyway they smack a tax on goods they import from you like

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the US government in the middle of our loss of dominion over the auto industry [Auto industry logos land in a seesaw]

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to Japan and Korea and Germany well we placed a big fat tax on foreign cars

01:50

being imported into the US and we still lost the war there so yeah the seesaw ie

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the balance of trade isn't always fair and by the way if you ever see this guy

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coming run at least feed him [Man running in a park]

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