Assets – Property of any kind

Balance of Trade – The differance between the exports and imports of two counteries in trade with each other is called Blance of payment. If the balance is positive then the balance of payment is called favourable and if negative it is called unfavourable

Balance Sheet – It is a statement of accounts, generally of a business concern, prepared at the end of the year, showing debits and credits under broad heads, to find out the profit and loss position

Banker’s cheque – A checque by one bank to another

Bank Rate – It is the rate of interest charged by the Reserve Bank of India for lending money to Commercial Banks

Barter – To trade by exchanging one commodity for another

Bearer – This terms on cheques and bills denotes that nay person holding the same, has the same right in respect of it, as the person who issued it

Black Money – It means unaccounted money, concealed income and undisclosed wealth

Bilateral Monopoly – Existance of single buyer and single seller

Bond – A legal agreement to pay a certain sum of money at some future date and carrying fixed rate of interest

Budget – An estimate of expected revenues and expenditures for a given period, usually a year, item by them

Budget Deficit – When the expenditure of the government exceeds the revenue, the balance between the two is the budget deficit

Bulls – Speculators in the stock markets who buy goods, in some cases without money to pay with, anticipating that prices will go up

Buyer’s Market – An area in which the supply of certain goods exceeds the demands so that purchasers can drive hard bargains

Call Money – Loan made for a very short period. It carries a low rate of interest

Commercial Banks – Financial institutions that create credit accept deposists, give loans and perform other financial functions

Deflation – It is a state in monetary market when money in circulation has decreased and is characterized by low prices and unemployment etc

Depreciation – Reduction in the value of fixed assets due to wear and tear

Devaluation – Official reduction in the foreign value of domestic currency

Direct Tax – Taxes that are directly borne by the person on whom it was initially fixed

Dividend – Earning of stock paid to shareholders

Dumping – Sale of a commodity at different prices in different markets, lower prices being charged in a market

Exchange Rate – The rate at which central banks will exchange one country’s currency for another

Excise Duty Tax – Imposed on the manufacture, sale and consumption of various commodities

Fiscal Policy – Government’s expenditure and Tax Policy

Gross Domestic Product (GDP) – A measure of the total flow of goods and services produced by the economy over a specific time period, normally a year

Repo Rate – The rate at which banks borrow from RBI. It injects liquidity into the market

Indirect Taxes – Taxes levied on goods purchased by the consumer for which the taxpayer’s liabilities varies in proportion to the quantity of particular goods purchased or sold

Inflation – A sustained and appreciable increase in the price level over a considerable period of time

Monopoly – Single seller selling single product

Monopolistic Competition – Existance of too many sellers selling differantiated products

Monopsony – Single buyer buying product being unique

Oligopoly – Existance of few sellers and few products.

Perfect Competition – Existance of too many sellers selling homogeneous product

Reverse Repo Rate – The rate at which RBI borrows from banks for a short term