Here comes the list.
Absolute Advantage:
Country ‘A’ has an absolute advantage over country ‘B’ if the output per unit of input of A is higher than that of B.
Country ‘A’ has an absolute advantage over country ‘B’ if the output per unit of input of A is higher than that of B.
Accelerator Principle:
Accelerator Principle of a company is the growth in ouput of the company that would induce a continuation in net investment.
Accelerator Principle of a company is the growth in ouput of the company that would induce a continuation in net investment.
Ad Valorem Tax:
It is a tax based on the value of the property.
It is a tax based on the value of the property.
Aggregate Demand:
It is the total of all the demand in a country. It can also be expressed as
Total Exports of a country – Total imports of the country.
It is the total of all the demand in a country. It can also be expressed as
Total Exports of a country – Total imports of the country.
Aggregate Supply:
Total value of good and services produced in an economy + {Imports-Exports}
Total value of good and services produced in an economy + {Imports-Exports}
Asset:
Any item of monetary value like bank accounts, real estate property, stocks,..etc
Any item of monetary value like bank accounts, real estate property, stocks,..etc
Barter System:
Trade which doesnt involve the exchange of money
Trade which doesnt involve the exchange of money
Bretton-Woods:
It is a monetary system that existed from the year 1946-1973. In this monetary system the value of dollar was calculated using gold reserves and every other country held it’s currency at an exchange rate with US dollars.
It is a monetary system that existed from the year 1946-1973. In this monetary system the value of dollar was calculated using gold reserves and every other country held it’s currency at an exchange rate with US dollars.
Budget Deficit:
Budget Deficit = Goverment Expenditure- Goverment Revenues.
Budget Deficit = Goverment Expenditure- Goverment Revenues.
Call Money Market:
It is the market in which the Dealers and brokers locate and borrow money to satisfy their investment needs.
It is the market in which the Dealers and brokers locate and borrow money to satisfy their investment needs.
Capital Gains Tax:
Tax paid for the profit made through the sale of an asset.
Tax paid for the profit made through the sale of an asset.
Cash Reserve Ratio{CRR}:
It is determined by the RBI and is the minimum reserves each bank must hold to customer deposits and notes..
Both CRR and Statutory Liquidity Ratio{SLR} are used to combat inflation. Higher CRR and SLR decrease the money supply thereby combating inflation.
It is determined by the RBI and is the minimum reserves each bank must hold to customer deposits and notes..
Both CRR and Statutory Liquidity Ratio{SLR} are used to combat inflation. Higher CRR and SLR decrease the money supply thereby combating inflation.
Centrally planned economy:
An economic system where the production & pricing of goods and services are determined by the goverment
An economic system where the production & pricing of goods and services are determined by the goverment
Classical Economics:
The theory emphasizes the fact that free market can regulate themselves. This theory was framed by Adam Smith, David Ricardo, Thomas Malthus and John Stuart Mill
The theory emphasizes the fact that free market can regulate themselves. This theory was framed by Adam Smith, David Ricardo, Thomas Malthus and John Stuart Mill
Closed economy:
The economy is closed and doesnt have any contact with the rest of the world
The economy is closed and doesnt have any contact with the rest of the world
Consumer Price Index:
It is the measure of the average price of consumer goods and services purchased by households. It is measured with 1982 as it’s base year.
Countervailing Duties:
These are the duties that are imposed by a country on Foreign producers in order to neutralize the negative effects of other duties.
It is the measure of the average price of consumer goods and services purchased by households. It is measured with 1982 as it’s base year.
Countervailing Duties:
These are the duties that are imposed by a country on Foreign producers in order to neutralize the negative effects of other duties.
Currency Appreciation:
Increase in the value of a currency over the other. It takes place when the market exchange rates change.
Increase in the value of a currency over the other. It takes place when the market exchange rates change.
Current Account Deficit:
Current account deficit= Export-Import
Current account deficit= Export-Import
Current GDP:
Current GDP is GDP expressed in the current prices of the period being measured
Current GDP is GDP expressed in the current prices of the period being measured
Customs Duty:
Duty levied on imports.
Duty levied on imports.
Deflation:
An economy is said to be in deflation when there is a fall in the prices of the commodities.
An economy is said to be in deflation when there is a fall in the prices of the commodities.
Direct Tax:
These are the taxes that are levied on us directly. Taxes on Corporate Income, Capital Gains tax, Personal Income tax and Fringe benefit tax fall under this category.
These are the taxes that are levied on us directly. Taxes on Corporate Income, Capital Gains tax, Personal Income tax and Fringe benefit tax fall under this category.
Dividends:
It is the portion of the profits made by a company that is paid to the share holders.
It is the portion of the profits made by a company that is paid to the share holders.
Exchange rate:
Also called as Foreign Exchange Rates or FOREX of a country specifies how much the country’s currency is worth in terms of the other currency.
Also called as Foreign Exchange Rates or FOREX of a country specifies how much the country’s currency is worth in terms of the other currency.
Fiscal Deficit:
Fiscal Deficit= Goverment Expenditure in the current fiscal year- Goverment Revenues in the fiscal year.
Fiscal Deficit= Goverment Expenditure in the current fiscal year- Goverment Revenues in the fiscal year.
Fiscal Policy:
It is the use of goverment revenue to influence the country’s economic situation.
It is the use of goverment revenue to influence the country’s economic situation.
Foreign Direct Investment:
It is the investment made by a company in one country on building a factory in another country.
It is the investment made by a company in one country on building a factory in another country.
Foreign Institutional Investor:
Investor from a foreign country.
Investor from a foreign country.
Free Trade:
In this type of trade there is no tariffs to the imported or exported goods between two countries.
In this type of trade there is no tariffs to the imported or exported goods between two countries.
Fringe Benefit:
These are the benefits that are offered to employees in addition to their salaries like lunch coupons, cars, free petrol etc.
These are the benefits that are offered to employees in addition to their salaries like lunch coupons, cars, free petrol etc.
GATT:
The General Agreement on Tariffs and Trade{GATT} was created in 1947 as a replacement to International Trade Organization (ITO). GATT was replaced by World Trade Organization in the year 1995.
The General Agreement on Tariffs and Trade{GATT} was created in 1947 as a replacement to International Trade Organization (ITO). GATT was replaced by World Trade Organization in the year 1995.
GDP {Gross Domestic Product}:
Expenditure method:
GDP = consumption + gross investment + government spending + (exports – imports)
Note: GNP is similar to GDP except for the fact that GNP takes the country’s localities into account
GDP = consumption + gross investment + government spending + (exports – imports)
Note: GNP is similar to GDP except for the fact that GNP takes the country’s localities into account
Income method:
The formula for GDP measured using the income approach, called GDP(I), is:
GDP = Compensation of employees + Gross operating surplus + Gross mixed income + Taxes less subsidies on production and imports
The formula for GDP measured using the income approach, called GDP(I), is:
GDP = Compensation of employees + Gross operating surplus + Gross mixed income + Taxes less subsidies on production and imports
GDP per capita:
GDP per capita is the contribution of every citizen of the country to the total GDP
GDP per capita is the contribution of every citizen of the country to the total GDP
Giffen goods:
These are the goods which people consume more as prices increase thereby violation law of demand. {Usually people purchase less as the prices increase}
These are the goods which people consume more as prices increase thereby violation law of demand. {Usually people purchase less as the prices increase}
Government Securities {G-Secs}
These are issued by the RBI on behalf of the market borrowing programme. It includes State Government Securities, Central Government Securities and Treasury Bills.
These are issued by the RBI on behalf of the market borrowing programme. It includes State Government Securities, Central Government Securities and Treasury Bills.
Human development Index
Measurement based on GDP per capita, life expectancy and education
Measurement based on GDP per capita, life expectancy and education
Inflation:
An economy is said to be in inflation when there is a rise in the price of the commodities.
An economy is said to be in inflation when there is a rise in the price of the commodities.
Indirect Tax:
These are the taxes that we don’t pay directly. It includes Excise Duty, Customs Duty, Service tax and Securities Transaction Tax.
These are the taxes that we don’t pay directly. It includes Excise Duty, Customs Duty, Service tax and Securities Transaction Tax.
Insurance Regulatory & Development Authority (IRDA):
It is based in Hyderabad and the Mission of IRDA as stated in the act is “to protect the interests of the policyholders, to regulate, promote and ensure orderly growth of the insurance industry and for matters connected therewith or incidental thereto.”
It is based in Hyderabad and the Mission of IRDA as stated in the act is “to protect the interests of the policyholders, to regulate, promote and ensure orderly growth of the insurance industry and for matters connected therewith or incidental thereto.”
Insurance Regulatory and Development Authority Act in 1999
This act allowed private companies into the insurance sector. It also increased the cap on FDI in insurance sector to 26 percent.
This act allowed private companies into the insurance sector. It also increased the cap on FDI in insurance sector to 26 percent.
International Labour Organization{ILO}
Was established in 1919 and is a specialized UN agency that deals with labour issues.
Was established in 1919 and is a specialized UN agency that deals with labour issues.
Internation Monetary Fund:
It is an organization of 186 countries that aims at stabilizing foreign exchange rates and assisting the reconstruction of the international payment system. It was established in 1944.
It is an organization of 186 countries that aims at stabilizing foreign exchange rates and assisting the reconstruction of the international payment system. It was established in 1944.
International Poverty Line:
It is the minimum money expressed in dollars that an individual needs to achieve an adequate standard of living. For some years this Internation Poverty Line has been roughly around one dollar a day.
It is the minimum money expressed in dollars that an individual needs to achieve an adequate standard of living. For some years this Internation Poverty Line has been roughly around one dollar a day.
Macro-economics:
As the word suggests, it deals with the economic behaviour and performance of an entire country.
As the word suggests, it deals with the economic behaviour and performance of an entire country.
Microcredit
It is the provision of credit, parsimony, and other financial services and products of very small amount to the poor in semi-urban, rural and urban areas. It is to enable them to raise their income levels and improve their living standards.
It is the provision of credit, parsimony, and other financial services and products of very small amount to the poor in semi-urban, rural and urban areas. It is to enable them to raise their income levels and improve their living standards.
Micro-economics:
This deals with studying how firms and households make decisions to allocate resources in markets. Market analysis is the main concept of Microeconomics.
This deals with studying how firms and households make decisions to allocate resources in markets. Market analysis is the main concept of Microeconomics.
Monetary Policy:
The policy through which the RBI controls the supply, availability and cost of money {Interset rate} in order to attain economic goals.
The policy through which the RBI controls the supply, availability and cost of money {Interset rate} in order to attain economic goals.
Net Domestic Product:
NDP= GDP-depreciation of capital goods in that country.
All are measured using Purchasing Power Parity
NDP= GDP-depreciation of capital goods in that country.
All are measured using Purchasing Power Parity
Nominal GDP:
Nominal GDP growth is GDP growth in nominal prices (unadjusted for price changes).
Nominal GDP growth is GDP growth in nominal prices (unadjusted for price changes).
Parallel economy:
Alternative term for black economy, shadow economy and underground economy.
Alternative term for black economy, shadow economy and underground economy.
Politically Exposed Persons PEPs
Politically Exposed Persons are individuals who are or have been entrusted with prominent public functions in a foreign country.
Politically Exposed Persons are individuals who are or have been entrusted with prominent public functions in a foreign country.
Purchasing power parity:
Using market exchange values to equalize their purchasing power.
Using market exchange values to equalize their purchasing power.
Quasi Money:
Also called as Near Money. These are the assets that can be easily converted to money without no loss in value.
Also called as Near Money. These are the assets that can be easily converted to money without no loss in value.
Real GDP:
Real GDP growth is GDP growth adjusted for price changes(using ppp).
Real GDP growth is GDP growth adjusted for price changes(using ppp).
Repo rate:
The rates at which banks borrow money from RBI.
The rates at which banks borrow money from RBI.
Reverse repo rate:
The rates at which RBI borrows money from the Banks.
The rates at which RBI borrows money from the Banks.
Securities:
It is an instrument that has a financial value. It can be classified as debt securites{Bank notes(currency), bonds} and equity securities{Stocks}.
It is an instrument that has a financial value. It can be classified as debt securites{Bank notes(currency), bonds} and equity securities{Stocks}.
Statutory Liquidity Ratio
It is determined by the RBI and is the minimum amount that a bank must hold in the form of gold, cash and government securities.
It is determined by the RBI and is the minimum amount that a bank must hold in the form of gold, cash and government securities.
Subsidy:
It is the payment given to the producers and distributors in a particular sector to prevent the downfall of that sector. For example goverment providers subsidies to small scale industry owners in order to prevent the downfall of small scale industries in the country.
It is the payment given to the producers and distributors in a particular sector to prevent the downfall of that sector. For example goverment providers subsidies to small scale industry owners in order to prevent the downfall of small scale industries in the country.
The Wealth of Nations:
It is the famous book written by Adam Smith {Renowned economist}
It is the famous book written by Adam Smith {Renowned economist}
Treasury Bills:
These are short term borrowing instruments that are issued by RBI. They are issued at discount to face value and on attaining maturity the maturity value is paid to the holder. The minimum amount in treasury bills is 25,000 Rs and thereafter they are available in multiples of 25,000.
These are short term borrowing instruments that are issued by RBI. They are issued at discount to face value and on attaining maturity the maturity value is paid to the holder. The minimum amount in treasury bills is 25,000 Rs and thereafter they are available in multiples of 25,000.
Wholesale price Index:
Wholesale price Index is used to measure the inflation in our country and is the price of a basket of wholesale goods with it’s base year as 1993-94.
Wholesale price Index is used to measure the inflation in our country and is the price of a basket of wholesale goods with it’s base year as 1993-94.
World Bank:
It is an international financial institution that was established in the year 1945. It provides loans to poor countries in order to reduce poverty.
It is an international financial institution that was established in the year 1945. It provides loans to poor countries in order to reduce poverty.
World Trade Organization:
Was established in the year 1995 in order to supervise international capital trade.
Was established in the year 1995 in order to supervise international capital trade.
