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Ready reference data typed on 05/08/2008
Economics
Some recent legislation covering economic issues
The companies (Second Amendment) act, 2002
It is an amendment of companies act, 1956, provides for both rehabilitation andwinding up of sick companies within a timeframe of a maximum of two years as
against the existing system, which takes about 18 to 26 years. The act also set up a
National Company Law Tribunal (NCLT), repealed the Sick Industries (Special
Provisions) Act, 1985, and dismantles the board for Industrial Finance andReconstruction (BIFR).
Under the law, a corpus fund is to be created, known as rehabilitation fund, for
taking care of sick companies and their investors as per the global standards.
The Competition Act, 2003It seeks to repeal the Monopolies and Restrictive Trade Practices (MRTP) Act,
1969.in the place of MRTP Act, Competition Commission of India (CCI) will be set up.
The CCI has started functioning as a regulator like other regulators to give impetus
to quality or products and services, competition, faster mergers and acquisition of
companies and mergers coming within the threshold limits, allowing dominance,and prevention of abuse of dominance to give effect to the second-generation
economic reforms.
The provision of the Act will be implemented in 3 phases
1. The Money Laundering Act, 2003
It seeks to provide for reciprocal arrangement for assistance in certain
matters and procedures for attachment and confiscation of property to
facilitate transfer of funds involved in money laundering kept outside the
country and extradition of the accused person from abroad.
It also provides for setting up of money laundering tribunal and appeal arising
out of the orders of the tribunal to the money laundering appellate tribunal
and from there to the Supreme Court for offences relating to moneylaundering.
The Constitution (95th) Amendment Act, 2003
The Act empowers the centre to levy service tax and allows both the Centre
and the States to collect and appropriate service tax bill will be enacted to
operationalise and modalities including collection and appropriation of service tax.
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Common Economic Terms
1. Account: - An account is a record of financial transactions in the
form of stock of flows. It is also an arrangement between a seller
and a buyer under which a period of credit is allowed before
payment. Up to the end of an account, transactions are madewithout payment and account dates are thus of vital importance to
speculators.
2. Ad Valorem Tax: - it is an indirect tax expressed as a proportion of
price of a commodity. Hence, it is ‘by value’. Value Added Tax is an
ad valorem tax.
3. Administered Tax: - the prices set by management (government)
decision rather than by negotiation between buyer and seller are
called administered prices.
4. Aggregate Demand :- it is the sum of all demand within an
economy, making up national income and expenditure. It includes
consumers expenditure on goods and services and investment in
capital goods and services.
5. Aggregate Supply:- it is the total of all goods and services
produced in an economy. It excludes exports but includes imports.
6. American Depository Receipts (ADR) :- it is a document issued
by a US bank against shares deposited with it or a bank overseas.
7. Amortisation :- it is a provision of repayment debt by means of accumulating a ‘sinking fund’ through regular payments.
8. Arbitrage: - it may be defined as an exploitation of differences
between the prices of financial assets, currency, or commodity
within or between markets by buying where prices are low and
selling where they are higher.
9. Assessable Profit: - it is the taxable profit of a business,
determined normally after the deduction of capital allowances,
interest and other business expenses.
10.Assets: everything that a company owns which has a money value
is classified as an asset.
11.Balance of Payment: - it may be defined as a tabulation of the
credit and debit transaction of a country with foreign countries and
international institutions. It is into current and capital account.
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12.Bank rate :- it is now an obsolete term for the rate of interest at
which the Central Bank of a country lends to other banks.
13.Bankruptcy: - it refers to is a declaration by a court of law that an
individual or company is insolvent, i.e., it cannot meet its debts on
the due rates.
14.Barriers to entry: - they may be defined as the technical oreconomical factors which prevent or make it difficult for firms to
enter a market and compete with existing employers.
15.Bear :- A bear is a stock exchange speculator who sells stock or
shares that he may or may not possess because he expects a fall in
prices and therefore, that he will be able to buy them back later on
at a profit.
16.Bill of exchange: - It is similar to post-dated cheque. It is a term
used in international trade by which the drawer makes an
unconditional undertaking to pay to the drawee a sum of money ata given a date.
17.Birth Rate: - The crude birth rate is the average number of live
births occurring in a year for every 1,000 population.
18.Black Economy: - The black economy is marked by ‘underground’
economic activity that is not declared for taxation purposes. It is
also called parallel economy because its objectives run parallel or in
contradiction with the objectives or sanctioned sector.
19.Black Market: - Market may be defined as illicit trade in goods
produced legitimately in most cases.
20. Blue chip: - It is a first class equity share, the purpose of which
entails little risk, even when there is sharp decline in earnings, or
economic recession.
21.Bond: - it is a form of fixed interest security issued by government,
companies, banks or other institutions.
22. Book value:- it may be defined as the value of assets in the
balance sheet of a firm. This is often in the purchase price and less
than the market value.
23.Budget: - it is an estimate of income and expenditure for a future
period. The national budget sets out estimates of Central
government, expenditure and revenue for a given financial year.
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24. Bull:- A bull is a stock exchange speculator who purchases stocks
and shares in the belief that prices will rise and that he will be able
to sell them again later at a profit.
25.Buyer’s market: - A market in which prices is falling, primarily due
to an excess of supply of the goods and services traded compared
with demand.
26.Call option: - it is a contract giving a right to buy shares from the
dealer making the contract at the price ruling at the time within a
specified future period.
27. Capital:-capital includes all assets which are capable of
generating income and which have themselves been produced. In
short, any asset or stock of assets – financial or physical- capable of
generating income is capital.
28. Capital formation: - also called investment, capital formation
refers to the change in the capital stock of an economy. Capitalformation includes fixed capital and inventories.
29. Capital intensive: - It is a mode of production of a commodity in
which, a higher proportion of capital is used.
30. Capital Market: - It is the market for long-term funds. It is not one
institution but all those institution that canalize the supply and
demand for long-term capital and claims on capital. E.g. the stock
exchange, banks, insurance companies, etc.
31. Carry over :- it is the postponement of the settlement of an
account on the tock exchange until the following period involving
payment of a rate of interest on the account.
32. Certificate of Deposit (CD):- it is a negotiable claim issued by a
bank in return for a term deposit.
33. Certificate of incorporation:- it is a document issued by the
registrar of companies certifying the legal existence of a company
after certain requirements for registration have been met.
34.Clearing House: - Any institution that settles mutual indebtedness
between a number of organizations is called a clearing house.
35.Closed Economy: - It is an economic system with little or no external
trade. It is opposite to open economy in which foreign trade,
payments, and movements of labour and capital into and out of a
country are unrestricted.
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36.Consumer durables: - these are the products purchased by the
households. These products are designed to yield benefits spread
over a number of years.
37.Consumer good: - an economic good or commodity purchased by
households for final consumption is called consumer goods.
38.Contracting out: - it is type of privatization. It is the practice of governments or firms of employing an outside agent to perform
some task rather than perform it themselves.
39. Corporation tax: - it is a type of tax levied on the assessable
profits of companies and unincorporated associations.
40. Cost-push inflation: - inflation induced by a rise in the costs of
production of goods and services is called cost-push inflation.
41. Counter trade: - it is a form of international trade in which the
buyer require the sellers to accept goods (of the buyers’ choosing)
in lieu of currency.
42.Countervailing duty: - it is a special additional import duty (tariffs)
imposed on a commodity to offset a reduction of its price resulting
from a export subsidy in the country of origin.
43.Credit: - granting the use or possession of goods and services
without immediate payment is known as credit.
44. Credit squeeze: - it is the government restriction on the
expansion of bank credit and finance house credit to reduce the
growth of aggregate demand.
45.Currency: - noted and coin that are the ‘current’ medium of
exchange in a country called the currency of that country.
46. Customs union: - A custom union is a trade arrangement
between two or more countries in which all barriers, such as tariffs
or quotas; to each other’s goods and services are removed.
47. Dear money: - It refers to a period when interest rates are
exceptionally high to restrict the money supply.
48. Death Rate: - A crude death rate is the number of deaths
occurring in any year 1,000 of the population.
49. Debentures: - Fixed interest securities issued by limited
companies in return for long-term loans are referred as debentures.
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50. Debt :- A sum of money or other property owned by one person
or organization to another is called debt. Debt comes through the
granting of credit or raising loan capital.
51.Deficit financing: - it is a deliberate or planned excess of
expenditure over income.
52.Deflation: - A sustained reduction in the general level of prices iscalled deflation. It is often accompanied by declines in output and
employment.
53. Demand –pull inflation:- it is inflation induced by persistence of
an excess of aggregate demand in the economy over aggregate
supply.
54.Depreciation: - the reduction in value of an asset through wear and
tear is called depreciation.
55.Devaluation: - it is the reduction of the official rate at which one
currency is exchanged for another.
56.Direct Tax: - it is a tax levied on the income and resources of
individuals or organizations.
57. Discount Market: - the market dealing in treasury bills, bills of
exchange and short-dated bond and consisting of the banking
system, the accepting houses and discount houses is referred to as
discount market.
58. Diseconomies of scale: - increase in long run average cost of a
good, which may set in as the scale of production increases, isknown as diseconomies of scale.
59. Disguised Unemployment :-
60. Dissaving: - when consumption is in excess of income, it is called
dissaving.
61. Dividend: - the amount of a company’s profits to be distributed
to share holder is called dividend. It is expressed either as
percentage of the nominal value of the ordinary share capital, or as
an absolute amount per share.
62. Dividend warrant: - It is the cheque by which companies pay
dividends to shareholders.
63.Dumping: - Dumping of good means sending goods to aforeign
market for the sale below marginal cost.
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64.Duopoly: - It refers to a situation wherein there are only two sellers
of a good or service in a market.
65. Econometrics: - Econometrics deals with use of mathematics for
describing economic relationship.
66. Economies of Scale: - Factors which cause the average cost of
producing a commodity to fall due to rise in the output of thatcommodity are referred to as economies of scale. There are two
types of economies of scale : internal and external. The internal
economies of scale arise from favourable technological factors. The
external economies of scale arise because the development of an
industry can lead to the development of ancillary services of benefit
to all firms. In other words, economies of scale are the advantages
that accrue to a firm or an industry by increasing the scale of
production.
67. Elasticity: - it is the proportionate change in the dependent
variable divided by the proportionate change in the independentvariable at a given value of the independent variable.
68.Elasticity of substitution: - the marginal rate of elasticity of
substitution is defined as the increase in the output of one factor,
say labour on the other say capital is reduced marginally. It is
defined as the percentage change in the ratio of inputs (labour
divided by capital) divided by the percentage change in the
marginal rate of substitution.
69. Enter pot: - It refers to the centre at which traded goods are
received for subsequent production.
70.Equity: - the residual value of a company’s assets after all outside
liabilities, except to shareholders, has been allowed for its termed
equity. In a mortgage or hire – purchase contract, equity is the
amount left for borrower if the asset concerned is sold and the
lender repaid.
71.Estate Duty: - It is a tax payable on a person’s property at his death
before it passes into the hands of others. The Estate duty is differ
from an inheritance tax. The latter is payable by the recipient and
may vary according to financial circumstances of the inheritor.
72.Exchange rate: - the price rate at which one currency is exchanged
for another currency. The actual rate at any one time is determined
by supply and demand conditions for the relevant currencies in the
market.
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73.Excise duty: - Excise duty is tax levied upon goods produced for
home consumption.
74.Expenditure tax: - it is a form of direct taxation on spending.
75. Externalities: - In economics, externalities are the costs not fully
accounted for in the price and market system. External
diseconomies of production include tariff congestion and pollutioncreated by a manufacturing plant.
76. Face value: - the face value of a security is the price at which it
will be redeemed.
77. Factor cost: - It is a term used in the national accounts to
describe the valuation of output at market prices after deducting
taxes on expenditure.
78. Final goods: - Final goods are the goods produced for direct
consumption.
79. Fiscal Drag: - It is the effect of inflation upon effective tax rates,
or sometimes, the effect of growth in nominal gross domestic
product (GDP) on tax revenues.
80.Franchising: - it is contractual arrangement under which an
interdependent franchisee products or sells a product or service
under the brand name of the franchiser. The franchisee provides his
capital and an independent enterprise.
81. Free-on-board: - it is a term which refers to the valuation of
goods up to the point of embarkation. The FOB compares with CIF(charge in full or Cost-insurance-freight), which is the valuation
including all transport costs and insurance to destination.
82. Free-market Economy: - It is an economic system in which the
allocation of resources is determined solely by supply and demand
in free markets. It is somewhere similar to capitalism
83. Free trade: - free flow of economic goods and services in
international exchange.
84. Free trade area: - it refers to an association of a number of countries between whom all import tariffs and quotas, export
subsidies, and other similar measures to influence trade have been
removed. However, each member of the association maintains its
own international trade measures with non-member countries.
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85.Free-trade Zone: - it is a customs defined area in which goods and
services are transacted without attracting taxes or duties being
subjected to certain government regulation.
86.Frictional Unemployment: - the unemployment that corresponds to
job vacancies in the same local labour market and occupation is
called frictional unemployment. It arises because of time lags in the
functioning of labour markets, which are inevitable in a free-marketeconomy.
87. Futures: - it refers to contracts made in ‘a future market’ for the
purpose or sale of commodities or financial assets, on a specified
future date.
88. GDP: - It is a total flow of goods and services produced by the
economy over a specified period. Outputs of goods and services are
valued at market price and their values aggregate to obtain the
GDP. The word ‘gross’ means that no deduction for the value of
expenditure on capital goods for replacement purposes is made. The word ‘domestic’ means the only the value of goods and services
produced in the country is estimated.
89. GNP: - It is GDP plus the income accruing to domestic residents
arising from investment abroad less income earned in domestic
market accruing to foreigners abroad.
90. GNP at factor cost means GNP at market price – all indirect taxes
and subsidies.
91. Hard currency: - It is a currency traded in a foreign exchangemarket for which demand is persistently high relative to the supply.
92.Holding Company: - A holding company is concerned with control
and not investment. It is a method by which a company controls one
or more other companies, normally by holding a majority of shares
of these subsidiaries, is called holding company.
93.Hot money: - It refers to funds, which flow into a country to take
advantage of favourable rates of interest in that country. Such
funds are good for balance of payments and exchange rate of the
recipient country.
94. Income: - it is a flow of money, goods or services to any
economic agent or unit. Such flows can take a variety of forms.
95. Income Elasticity of demand: - It refers to proportionate change
in the quantity of a commodity demanded after a unit proportionate
change in the income of consumer with prices held constant.
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96. Index number: - it is a weighted average of a number of
statistical observations of some economic attribute, as a percentage
of a similar weighted average calculated fort h attribute at an
earlier, or base, period. Prices and production are among the typical
economic attributes for which index numbers are calculated.
97. Inflation: - Inflation is persistent increase in the general level of
prices. It can also be seen as a devaluing of the worth of money.
98. Inflation Gap: - It refers to a situation in which aggregated
demand is not an equilibrium level in excess of the full-employment
level of output. If it exists, all resources in the economy are fully
utilized.
99. Insurance: - It is a contract to pay a premium in return for which
the insurer will pay compensation in certain eventualities, such as
fire, theft and accident.
100. Internal rate of return: - It refers to the rate of interest whichdiscounts the flow over time of net revenue generated by an
investment such that the present value of the net revenue flows is
equal to the capital sum invested.
101. International liquidity: - The amount of gold, reserve currencies
and special drawing rights (SDR) available for international trade is
called international liquidity.
102.Investment: - Investment is capital formation that will produce a
stream of goods and services for future consumption. Investment
involves the sacrifice of current consumption and the productionof investment goods. In common usage, investment is expenditure
on the acquisition or financial or real assets. However, economics
do not consider it investment, but simply a shift of savings from
one form to another.
103.Irredeemable Security: - It is a type of security, which does not
bear a date at which the capital sum will be paid off or redeemed.
Such security is also sometimes referred to as undated securities.
104.Issuing House: - It is an institution that organizes the raising o
capital by new issues of securities on behalf of clients.
105.Joint Stock Company: - It refers to a business enterprise in which
the capital is divided into small units permitting a number of
investors to contribute varying amounts to the total. Profits in such
a company are to be divided between stockholders in proportion
to the number of shares they own.
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106.Labour: - Labour is a factor of production. The term includes both
the number of people available for an engaged in the production
of goods and services and their physical and intellectual skills and
efforts.
107.Labour-intensive: - An economic enterprise is called labour-
intensive if it requires relatively more labour value as input per
unit of output than other factor of production.
108.‘Leads and Lags’: - The phrase refers to the differences in the
settlement of debts in international trade. These differences could
cause a deficit or durplus for a short period in the balance of
payments, even though the underlying trade was in balance.
109.Lease: - Lease is an agreement between the owners of property
(lesser) to grant use of it another party (lessee) to grant use of it
to another party (lessee) for a specified period at a specified time
interval.
110.Letter of credit: - It refers to an order from a domestic bank to a
bank abroad authorizing payment to a person, named in the letter,
a particular sum of money up to a limit of a certain sum. Letters of
credit, unlike bills of exchange, are not negotiable, but are
cashable at known bank.
111.Liquidity: - it is defined as the degree to which an asset can be
quickly and cheaply turned into money, which, by definition, is
liquid. A current account bank deposit is liquid asset because it
can be withdrawn immediately at little cost.
112. Liquidity Ratio: - the proportionate of asset of the total assets of a
bank which are held is called liquidity ratio. These assets include
money lent out to the money market and short term bonds issued
by the government. Liquidity ratio is also defined as the ratio of
liquid assets to the current liabilities of a business. Also known as
the cash ratio, it is a very crude test of solvency.
113.Listed Company: - It is a company whose shares are listed on the
main market of the stock exchange.
114. Listed security: - it is a security listed and tradable on the stockexchange.
115. Macroeconomics: - It is a branch of the study of economics,
which deals with the economic systems, i.e., the aggregate of the
functioning of individual economic units. It is primarily concerned with
variables which follow systematic and predictable paths of behaviour.
More specifically, macroeconomics is a study of national economics
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and the determination of national income. It focuses on sectors of
economy which run across the entire economy, say the industrial
sector, and not those that function as separate units, say the ‘car
production sector’.
116. Marginal cost: - It is the increase in the total costs of a firm
caused by the increasing output by one extra unit. If all costs are fixed,
the marginal cost of the first unit of output will be very high, but allsubsequent units can be made for nothing.
117. Maturity: - It refers to date upon which the principal of a
redeemable security becomes repayable.
118. Memorandum of Association: - It is the document, which forms
the basis of registration of a company. The memorandum of
association must list (i) the subscribers to the capital of the company;
(ii) the number of shares the subscribers have agreed to take; (iii)
name and addresses f the company; an where appropriate, (iv) liability
of its members. The articles of association set out the rules by whichthe company will be administered.
119. Merger: - It is the fusion of two or more separate companies into
one. In current usage, in merger both the emerging companies wish to
join together on roughly equal terms.
120. Microeonomics: - it is a section of individual in economics where
the general concern is the efficient allocation of scarce resources
between alternative uses. Microeconomics covers both the behavior of
individual sectors and the way the sectors interact in equilibrium and
disequilibrium in individual markets.
121. Money: - money is defined as something, which is eidely,
accepted in payment of goods and services and in settling debts.
122. Money Market: - the money market is the market for borrowing
and lending of short term funds. Money has a time value, and
therefore the use of it is bought and sold against payment of
interest. In money market, compromising banks and other financial
institutions, borrowers include companies, individuals and the
government.
123. Monopoly market: - It is a market there is only one supplier.
There are three special features of monopoly market: (i) it is
motivated by profits; (ii) barriers prevent new firms from entering
the industry; and (iii) the actions of the monopolist itself affect the
market price of its output.
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124. Mutual funds: - Mutual funds re such funds that mobilizes the
savings of the general publc and invest them in stock market
securities.
125. Natural economy: - It refers to an industry in which technical
factors prevent the efficient existence of more than one producer.
126. Net Domestic Product: - it is GDP-Capital consumption.
127. NNP: - it is the net domestic product plus the net earning from
abroad.
128. Nominal value: - It is the face value of a share or bond, which
may be more or less than its market price.
129. Non-tariff Barriers :- these are the obstacles of imports other
than quotas or tariffs. Prominent examples are : use regulations
which favour domestic over imported products; legal requirements
that insurance service providers should be domiciled within national
boundaries; and deliberate delay or obstruction at customer
facilities.
130. Open Economy: - it refers to a situation in which foreign trade
and payments and movements of labour and capital into and out of
a country are unrestricted.
131. Options trading:- it may be defined as deferred delivery contracts
which give the buyer the right to buy or sell a specified underlying
security, at a set price, on or before a specified date. In option
trading, the buyer receives a privilege. He has to pay a fee called
premium in lieu of this privilege. It is of 3 types:- call option, put
option and the one to buy or sell is a double option.
132. Overdraft: -it is a loan facility on a customers’ currency account
at a bank permitting him to overdraw up in a certain agreed limit for
an agreed period. The terms of the loan are normally that it is
repayable on demand, or at the expiration of the agreement. Thus,
an overdraft is different from a term loan.
133. Oversubscription: - when the demand of anew issue of shares
exceeds the number on offer, the issue is said to be iver-subscribed.
134. Over-trading: - A firm is said to be overtrading when it has
insufficient working capital to meet the needs of its present level of
business.
135. Paid-up capital: - It is that part of the issued capital of a company
that has been paid up by the shareholders.
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136. Par value: - It is the price at which a share or other security is
issued, i.e. the face value of the investment.
137. Pay-as-you-earn: - it refers to a system of collecting income tax
through regular deduction by the employer from weekly or monthly
earnings of his employees.
138. Per capita income: - It is the income per head, normally definedas the national income divided by the total population.
139. Poll tax: - A tax levies equally on each person in the community.
140. Poverty Trap: - It refers to the combination of losing state
benefit entitlement and paying tax which can ensure that poor
families keep very little of any extra money that earn.
141. Prepayment: - these are the payments for services such as rent
and rates made in one accounting period for consumption wholly or
partly in a following period.
142. Primary market: - It refers to that part of the capital market that
serves as the market for new long-term capital. The institutions
needing capital offer shares and securities which are purchased by
each other and the general people.
143. Privatization: - Privatisation refers to an economic activity in
which government –owned equity in nationalized industries or other
commercial enterprises is sold to private investors. The government
may or may not lose control in the organizations whose equity has
been sold.
144. Promissory notes: - it is a legal document between lender and a
borrower whereby the latter agrees to certain conditions for the
repayment of the sum of money borrowed.
145. Protection: - it refers to imposition of tariffs or quotas to restrict
the inflow of imports.
146. Public Enterprise: - it refers to market activity, carried on by
state owned or controlled enterprises.
147. Public Expenditure: - it is spending by the general government.
148. Public Finance: - it deals with the government’s financial policies.
It analysis the effect of taxation and expenditure on the economic
conditions of individuals and institutions. It also attempts to analyse
the impact of taxation and expenditure on the economy as a whole.
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149. Purchase Tax: - It is an indirect tax levied at different percentage
rates for different commodities on their wholesale prices.
150. Quota: - It refers to the quantitative limits placed on the
importation of specified commodities in international trade. Fixation
of quotas is more effective than raising imports tariffs in providing
protection of industries as the effect of the latter depends on the
price elasticities of the imported commodities.
151. Quoted Company: - A quoted company is the ne included in the
official list of a recognized stock exchange.
152. Random Sample: - it is a sample in which every member of the
population or some subset of the population being tested has an
equal chance of being included in the sample.
153. Rate of interest: - the proportion of a sum of money that is paid
over a specified period of time in payment for its loan is called rate
of interest. In other words, it is the price a borrower has to pay toenjoy the use of cash which he does not own.
154. Rate of return: - It is net profit after depreciation as a percentage
of average capital employed in abusiness.
155. Recession: - It is a term used to express a sharp slowdown in the
rate of economic growth or a modest decline in economic activity.
Recession is less severe than depression, which indicates a slump in
economic growth.
156. Reflation: - Reflation refrs to a macroeconomic policy of
increasing aggregate demand in the economy in order to reduce
unemployment.
157. Reserve Currency: - it is a currency which government and
international institutions are willing to hold in their gold and foreign
exchange reserves and which finances a significant proportion of
international trade.
158. Returns to scale: - proportionate increase in output resulting
from proportionate increases in all inputs. It is of two types:
increase in output, increase in output.
159. Rights issue: - An offer of new shares to existing shareholders is
called rights issue. It is relatively a cheap way to increase the price
of a capital for a quoted company.
160. Risk Capital: - It refers to long-term funds invested in enterprises
that are subject to risk, as in new ventures. Sometimes, used as a
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synonym for equity capital, it is also used for the term venture
capital.
161. Sales Tax: - It is a tax levied as a proportion of the retail price of
a commodity at the point of sale.
162. Scrip issue: - an issue of new shares to shareholders in
proportion to their existing holdings is called scrip issue. It does nothelp to raise money but merely and adjustment to the capital
structure. The word ‘scrip’ is an abbreviation of ‘subscription
certificate’.
163. Securities: - Securities are the documents giving title to property
or claims on income which may be lodged, eg., as security for bank
loan. Securities are also the income – yielding and other paper
traded on the stock exchange or in secondary markets. It can be
divided into three groups: - fixed interest (debentures, preference
shares, stocks and bonds, including all government securities),
Variable interest (ordinary shares); and other (bills of exchange,assurance policies, warrants etc.)
164. Share: - It is one of a number of equal portions in the nominal
capital of a company, entitling the owner to a proportion of
distributed profits and of residual values if the company goes into
liquidation.
165. Social Capital: - the total stock of a society’s productive assets is
called social capital. E.g. defense and education.
166. Social cost: - it is the sum of the money which is used for publicresources and any additional costs imposed on society from such
use.
167. Social security: - It refers to a system of government-financed
income transfers. It is designed to effect a distribution of income
considered desirable.
168. The main component of most of the social security systems is
welfare benefit, given to those in poverty.
169. Socialism: - It refers to a social and economic system in which
means of production are collectively owned. In socialism, equality is
given a high priority.
170. Soft currency: - It is a currency whose exchange rate is tending
to fall because of persistent balance of payment deficit. The
speculative selling of the currency in anticipation of a decline in its
exchange rate may also result in real fall in exchange rate of the
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currency. Government avoids holding a soft currency in their foreign
exchange reserves.
171. Soft loan: - It is a loan bearing either no interest or an interest
rate which is below the true cost of the capital lent.
172. Spot Market: - It refers to a market in which goods or securities
are traded for immediate delivery. The price for immediate deliveryis called spot price.
173. Stagflation: - It refers to inflation associated with static or
declining output and employment.
174. Stamp duty: - it refers to form of indirect taxation, which involves
the fixing of prepaid stamps to legal and commercial documents.
175. Stock: - the term ‘stock’ means a fixed interest security, I;e; loan
stock in a company or government stock.
176. Stock exchange: - it refers to a market in which securities arebought and sold.
177. Structural unemployment: - it is a type of unemployment which
occurs due to changes in technology and demand. In this type of
unemployment, there is an oversupply of labour with particulat
skills or in particular locations.
178. Subsidy: - Government grants in supply of goods and services
are known as subsidies.
179. Supply: - the quantity of a good or a service available for sale atany pecified price is called supply.
180. Take over: - The acquisition of one company by another is called
take-over. The term ‘take-over’ is normally used to imply that the
acquisition is made on the initiative of the acquirer and without the
full agreement of he acquired company.
181. Tariff: - Tariff is the tax imposed on commodity imports. It may
be levied on an ad valorem basis, i.e. as a certain percentage of
value, or on a specific basis, i.e. as an amount per unit.
182. Tax base: - The quality or coverage of what is taxed is called tax
base. For example, the tax base for income tax is the assessed
incomes of the whole population.
183. Tax burden: - the amount of money which individual, institution
or group must pay in tax is called tax burden.
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184. Tax yield: - It is th amount of money which results when the rate
of tax is applied to the money value of tax base- the cost of
collecting the tax.
185. Taxation: - it is a compulsory transfer of money from private
individuals, institutions or groups to the government.
186. Tenders: - These are the offrs to supply goods or services at afixed price.
187. Term loan: - It is a bank advance for a specified period. The
advance made is to be repaid, with interest, usually by regular
periodical payments. The interst of a term loan is fixed and the oan
cannot be recalled in advance of its maturity date.
188. Terms of trade: - the ratrion of the index of export prices to the
import prices is called the terms of trade. If export prices rise more
quickly than import prices, an imprivemtn in the terms of trade is
said to have occurred.
189. Tied Loan:- It is a loan made on condition that certain purchases
are made form the lender.
190. Time preference of consumers: - It is the amount by which
consumers weigh immediate consumption in preference to deferred
or postponed consumption.
191. Trade barrier: - It is a general term which is used to express any
government limitation on the free international exchange of
merchandise.
192. Trade cycle: - It refers to regular fluctuations in the level of
national income. It often occurs on a generally upward growth path
and has a variable time span.
193. Trade discount:- It is the it is the percentage below the published
retail price of a commodity at which a manufacturer sells to his
distributors, wholeale or retail, or at which a wholesales sells his
goods to a retailer.
194. Transfer Costs: - It is the total costs of moving goods or materials
from one place to another. Transfer costs include loading/unloadingcosts amd administrative costs as well as transport costs.
195. Transfer payments: - thse are the grants or other payments that
are not made in return for a productive sefvice. It is a form of
economic redistribution. They are not a return to the factors of
production.
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196. Transfer pricing: - It refrs to an internal price system adopted by
a large organization for transactions between semi-autonomous
divisions.
197. Treasury bills: - these are the instruments for short-term
borrowing by the government.
198. Turn over: - The total sales revenue of a business is calledturnover.
199. VAT: - It is a general tax applied at each point of exchange of
goods and services from primary production to final consumption. It
is levied on the differences between the sal price of the goods or
services, to which the tax is applied and the cost of goods and
services bought in for use of its production.
200. Wealth :- A stock of assets held by any economic unit that yields
income, or has the potential for yielding income is called wealth.
201. Window dressing: - It is rearrangement of a company’s financial
affairs at the year-end to make the balance sheet look different
from usual.
202. Yield: - the income from a security as a proportion to its current
market price is called yield.
203. Yield curve: - It is a graphical representation of the relationship
between the annual return on an asset and the number of years the
asset has before expiring.
204. Yield Gap: - It is the difference between yield on ordinary sharesand the yield on gilt-edged securities. If the latter exceeds the
former, it is called the reverse yield gap.
Economics information collected by: “Pratiyogita Darpan”
Economics 2006
1. Sagaramal
a
Name associated with a project of port
development
2. President
of CII
(Chambers
of Indian
industries)
Mr. Sunil Kant Munjal
3. Chairman Prime minister
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of Island
Developme
nt
authority
4. December
2
Computer literacy day
5. Maximum
% of SC
population
Punjab
6. NIKKEI Share price index of Tokyo Share Market
7. NABARD It was established on the
recommendation of Shivraman
Caommittee.
8 VAT Is imposed in all stages between
production and final goods
9 Kutir Jyoti
Scheme
Providing electricity torural families
living below the poverty line.
10 CAPART Assisting and evaluatiog rural welfare
programmes.
11. Bank has
maximum
no. of
branches
AN2 Griendley’s bank
12. India brand
enquiry
1996
13. Indian
Ocean Rim
Association
for
Regional
Co-
operation
March 15, 1997
14 IRDP 1978-79
15. RBI National Housing Bank is controlled
enterprises
16. Monetized Increase in net TRBI credit for central
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deficit Governemnt represents
17. Nanjundup
pa
Committee
Rangrajan
Committee
Gaiporia
Committee
Railway fare
Balance of payment
Banking service improvements
18. Sangam
Yojana
To ensure welfare of handicapped
19. Nobel Prize
for 2004 in
Economics
Finn Kydland and Edward Prescott
20. Hawala Illegal transactions of foreign exchange
21. Lowest
population
in 2001
census
Lakshadweep
22. Stagflation Inflation with depression
23. Reforms in
tax
structure
Chelliah committee
24. Banking
structure
reforms
Narsimha Committee
25 2003 This year is eclared as consumer
Satisfaction year by Railways
26. National
Rural
Developme
nt institute
Hydearbad
27. UNCTAD X Ths exhibition was held on 12-19th Feb
2000 at Bangkok (Thailand)
28. Super 301 American rade law
29. Wardhman The first fully literate country is outside
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(West
Bengal)
Kerala
30 Indravati
Hydroelect
ric Project
Orissa Tate
31. Limitedcompany
In which shareholders possess theownership limited to their paid up
capital
32. IRBI 1985
33. Sidbi’s
headquarte
rs
Lucknow
34. Establishin
g new
stock
exchanges
M. J. Pherwani
35 Confine Canara Bank
36. Bank Note
Press,
Dewas
20 rupees and above value notes are
printed
37. August
1996
Disinvestment Commission in India
38. 1952 Employment State insurance Scheme
39. Voluntary
Retiremnt
Golden Handshake Scheme
40. Dunkel
proposal
Trade related intellectual property
Rights TRIPS and TRIMS- Trade Related
Investment Measures
41. Sundarajan
Committee
Petroleum
42. Sensex It deals with 30 compnaies
43. Tamarthi
Power
Project
Bhutan and India
44. HDR 2005 A better investment climate for
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everyone
45. MP Deen Dayal Employment Scheme
46. Maastricht
Treaty
Eurpoe Unification
47. Meera Seth
Committee
Development of Handlooms
48. Backwash
effect
Gunnar Myrdal
49. Janata
Cloth
Scheme
1976
50. IPLEX 2005 Plastic industries
51. GyandeepShiksha
Yojana
Higher education in UP
52. Long term
grain policy
Abhijit Sen
53. M. U. Rao
Committee
National Seed policy 2002
54. Rail Neer 2002-03
55. Quick MailService
Rajdhani Mail Channel
56. Insurance
Sector
R. N. Melhotra Committee
57. Dow Jones Share market index of New York
Exchange Market
58. 2001
census
Sex ration in Uttaranchal 964/1000
59. Caracus The 12th Summit of G- 15
60. Mercosue Free trad zone of nationsof South
America
61. Kojhikode
Airport
Golden gate
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62. Open sky
scheme
Export promotion scheme of Civil
Aviation Ministry
63. Surat First Export Promotion Zone
64. 9th Plan Khetihar Mazdoor Bima Yojana
65. Daheg The first chemical port of india for
export-import of chemical products.
66. IMF IMF is the result of Bretton Wood
Conference.