TERMS AND TERMINOLOGY - Part 1
Jagranjosh.com presents the terms and terminology of various terms that hold special significance in the field of Economics. Let us have a look at some important terms mostly used in the feild of Economics.
ASEAN: ASEAN stands for Association of South-east Asian Nations. It is an economic, political & cultural organisation of nations located in South - East Asia—Indonesia, Thailand, Malaysia, Philippines, Singapore, Brunei Darussalam, Laos, Cambodia, Myanmar & Vietnam.
BOP: BOP stands for Balance of Payments. It is a statistical declaration summarizing all the external transactions on capital and current account in which a nation is occupied over a period of time. As the Balance of Payment shows the total obligations and assets over a time-period, it always poises.
Bilateral Trade Agreements: Bilateral Trade Agreements are the agreements related to the trade of services and commodities between two nations.
Budgetary Deficit: Budgetary Deficit is a situation when government’s income & tax receipts fall short to cover its expenditures.
BEE: BEE stands for Bureau of Energy Efficiency. It is a government organisation that aspires to build up policies & strategies with a force on market principles and self regulation. It endorses energy conservation in diverse sectors of economy & embarks on measures aligned with the uneconomical uses of electricity.
BPO: BPO stands for Business Process Outsourcing. It is a division of outsourcing that engages the contracting of operations & responsibilities of explicit business functions to a 3rd party service provider.
CRR: CRR refers to Cash Reserve Ratio. It is a proportion of total deposits & reserves of commercial banks that is to be kept with the Reserve Bank of India in liquid form.
Deficit Financing: Deficit Financing is a situation where expenditure of government surpasses its revenue.
Devaluation: Devaluation is the fall in exchange rate which diminishes the value of currency in terms of other currencies.
Disinvestment: Disinvestment is a purposeful sale of a part of capital stock of company to elevate resources & alter the equity and management configuration of a company.
Equities: Equities can be defined as Shares in the paid - up capital or company’s stock whose holders are deemed as owners of the company with dividends in the profit and voting rights.
European Union: European Union is a union of 25 states founded to augment economic, social and political cooperation within the European continent. The countries of European Union are Belgium, Austria, Cyprus, Denmark, Czech Republic, Estonia, France, Finland, Germany, Hungary, Greece, Ireland, Italy, Lithuania, Latvia, Luxembourg, Portugal, Netherlands, Spain, United Kingdom, Sweden, Malta, Slovakia, Slovenia and Poland.
Fiscal Management: Fiscal Management can be defined as the use of taxation & government expenditure to standardize economic activities.
Foreign Exchange: Foreign Exchange refers to bonds and Currency of another country.
Foreign Direct Investment: Foreign Direct Investment refers to Investment of foreign assets into domestic structures, organisations or equipment. It doesn’t embrace foreign investment into stock markets. FDI is thought to be more constructive to a nation than investments in equity of its companies as equity investments are potentially ‘hot money’ which can depart at the 1st sign of trouble, while FDI is long-lasting & usually helpful whether things turn out well or badly.
Foreign Exchange Markets: Foreign Exchange Markets can be defined as a market in which currencies are bought & sold at the rates of exchange fixed now, for delivery at particular dates in future.
G-20: G-20 is a Group of developing countries namely Bolivia, Argentina, Brazil, Chile, Cuba, China, Egypt, India, Guatemala, Indonesia, Nigeria, Mexico, Pakistan, Philippines, Paraguay, South Africa, Tanzania, Thailand, Venezuela & Zimbabwe. G-8 is established to lay impetus on issues pertaining trade & agriculture in WTO.
G-8: G-8 is the Group of Eight countries namely Canada, Germany, France, Italy, United Kingdom of Great Britain & Northern Ireland, Japan, USA & Russian Federation. The hallmark of G - 8 is an yearly economic & political meeting of the heads of government with worldwide officials.
GDP: GDP stands for Gross Domestic Product. GDP is the total value of final goods & services formed within a country’s borders in a year, apart from ownership.
Infant Mortality Rate: Infant Mortality Rate is the number of deaths of infants before reaching 1 year of age per 1000 life births, in a particular year.