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Economic Terms

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Economic Terms

  • Debenture: Debenture is a loan issued by a firm, involving g a fixed repayment schedule, in terms of both time and interest.

  • Debit: Money paid out from an account either from a withdrawal or a transaction that result in decreasing the cash balance.

  • Demand: The willingness and ability to buy a range of quantities of a good at a range of prices, during a given time period. Demand is one half of the market exchange process; the other is supply.

  • Economic Policy:  A government policy for maintaining economic growth and tax revenues.

  • Enterprise: An organization that combines scarce resources for the production and supply of goods and services.

  • Entrepreneurship: Entrepreneurship is a special sort of human effort that takes on the risk of bringing labor, capital, and land together and organizing production.

  • Exchange rate: The amount of a particular currency needed to buy a standardized amount of another currency

  • Equity: Equity is a one financial instrument by which company invite the public to invest their money in the company and investor can become a partner of the company. Generally, when the company have insufficient money to expand its business it comes with equity shares.

  • ET 500: The list of top 500 Indian companies framed on the basis of performance of the Indian Corporate and achievements of top sectors.

  • FICCI:  Federation of Indian Chambers of Commerce and Industry

  • Fiscal policy:  Fiscal policy defines the use of government spending and revenue collection to influence the economy.

  • Fiscal Year: The 12-month period government uses for collecting taxes, appropriating spending, and otherwise tabulating its budget. A government's fiscal year need not be identical to the standard January to December calendar year.

  • Free Market: A competitive market that is unrestrained by government control or regulations.

  • Foreign Direct Investment (FDI): Investment of foreign assets directly into a domestic company's structures, equipment, and organizations. It does not include foreign investment into the stock markets.

  • Foreign Exchange (FOREX):  Foreign Exchange (FOREX) is the arena where a nation's currency is exchanged for that of another.

  • Fortune 500: A list of the 500 largest (in terms of sales) publicly held corporations in the good old U. S. of A., as compiled and published by Fortune magazine.

  • GDP: GDP stands for Gross Domestic Product. It is a method of measuring the size of economy of a country. We can define as the total market value of all the goods and services produced in a given period of time in a country.

  • GNP: The total value in money of all finished good and services produced in an economy in one full year, and all net property income from abroad. The GNP growth rate is an important economic indicator for country’s economic development.

  • Hoarding: The act of accumulating assets, especially goods or money, over and above that needed for immediate use based on the fear or expectation of future shortages and higher prices.

  • Interest rate: The percentage of a sum of money charged for its use.
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