ARBITRATION |
Referring dispute to disinterested party called arbitrator for decision,
which will be binding. |
ANNUITY |
Payment of a fixed amount periodically for a limited time. It is an
investment on which the owner receives not only interest on his money
but also return of his capital. |
BALANCE OF TRADE |
The difference between the value of imports and exports. It is
favourable when the value of exported goods exceeds the value of
imported goods. If it is reverse balance is unfavourable. |
(more content follows the advertisement below) A D V E R T I S E M E N T
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BALANCE SHEET |
Statements of accounts, generally os a business house prepared at the
end of a year, showing debits and credits under broad heads, in order to
find out the profit and loss positions in the outgoing year. |
BARTER |
Exchange of commodity with other commodities without the interface of
any form of currency. |
BOND |
Document by which a government, a company or a person agrees to pay a
sum of money in a certain time. |
BUDGET |
Annual estimate of expenditure and revenue of a country or a subordinate
authority like a corporation. |
BILL OF EXCHANGE |
Written order by a drawer to pay sum on given date ot named payee. |
BUYER'S MARKET |
An economic phenomenon where there are more goods in market than
demanded and so the buyers can dictate the prices of goods. |
CLEARING HOUSE |
Place where officials of the banks meet daily to exchange cheques drawn
on the respective banks and settle the account by the payment of
balances only. |
COOPERATIVE FARMING |
Joint farming wherein farmers pool their land, capital and resources and
divide the produce at the end of the harvest in proportion to their land
put in the pool. The farmers retain their proprietary rights. |
CEILING ON LAND AND HOLDING |
Imposition of a maximum limit of the land which an individual should
have. Its purpose is rational distribution of land. |
DEATH DUTY (ESTATE DUTY) |
A sort of tax imposed on the property inherited at death of its previous
owner. |
DEVALUATION |
Government's step to reduce the value of its own currency relatively to
a foreign currency. It aims to increase exports and reduce imports. |
DEFLATION |
A monetary state characterised by decrease in the supply of money and
bank deposits and falling profits, wages, incomes and employment
accompanied by unemployment and falling prices. |
DEMONETISATION |
The governmental measure of depriving metallic coins or paper currency
od specified denominations of its status money. It is meant to unearth
the hidden money which is unaccounted for purpose of income tax
assessment. |
EXCISE DUTY |
Duty levied on goods manufactured within the country. |
FOREIGN EXCHANGE |
Transfer of money of one country to another. |
INFLATION |
Increase in the quality of money in circulation without any
corresponding increase in goods; so, it leads to rising prices spiral. |
LAISSEZ FAIRE |
An individualistic theory advocating private initiative in trade and
non-interference by State in commercial or business ventures. |
LOCKOUT |
Closure of a factory by owners to force the workers to accept the
imposed terms. |
MALTHUSIAN THEORY OF POPULATION |
It states that the food supply increase in arithmetical progression
while population increase by geometrical progression resulting in
over-population. |
OCTROI |
Tax imposed on articles coming inside a city. |
PUBLIC SECTOR |
Applies to State enterprises or undertaking. |
RECESSION |
An economic phenomenon characterised by excessive production, less
demand, tight money market. |
SOFT CURRENCY |
Currency of a country with which we have favourable balance of trade. |
STERLING AREA |
Group of countries of Commonwealth (except Canada) keeping their
reserves in sterling and not gold or dollars. |
TARIFFS |
Measures undertaking by one country to protect industry against trade
competition from outside. |