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IBPS PO III Result: IBPS PO 2013 Result, IBPS CWE PO/MT-III Result

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Economy/Banking Current Affairs Questions for IBPS Clerk Exam 2013

Friends…here is the Part-8 of our Economy/Banking Current Affairs Questions for IBPS Clerk Exam 2013….

1. India’s core sector growth stood at ___________ in August as published in Oct 2013)?

(A) 3.7%

(B) 3.1%

(D) 2.3%

Ans. (A) 3.7%

2. Who took over charge as Chairman and Managing Director of Bharat Petroleum Corporation Limited (BPCL) in Oct 2013?

(A) SB Nayar

(B) S Varadarajan

(D) B Ashok

Ans. (B) S Varadarajan

3. Which IT Services Company acquired the Equinox Consulting, a financial services consulting firm based in France, in Oct 2013?

(A) Cognizant

(B) TCS

(D) Wipro

Ans. (A) Cognizant

4. Which country has topped the global chart of remittances with a whopping USD 71 billion in remittances in 2013?

(A) China

(B) Philippines

(D) India

Ans. (D) India

5. ECB has kept its benchmark interest rate on hold at ________ in Oct 2013.

(A) 0.5%

(B) 0.25%

(D) 1%

Ans. (A) 0.5%

6. Who has been appointed chairman of Karnataka Vikas Grameena Bank (KVGB), a regional rural bank sponsored by Syndicate Bank, in Oct 2013?

(A) Ashok Reddy Nukala

(B) S.R. Bansal

(D) Umesh Chand Asawa

Ans. (A) Ashok Reddy Nukala

7. Which IT Company acquire ValueSource NV, a subsidiary of Belgium-based integrated bank insurance group KBC, as part of a five-year contract with the group in Oct 2013?

(A) Cognizant

(B) TCS

(D) Wipro

Ans. (A) Cognizant

8. India has been ranked at ______ position out of 122 countries on global Human Capital Index published by the World Economic Forum in Oct 2013.

(A) 78th

(B) 85th

(D) 66th

Ans. (A) 78th

9. Government of India has appointed a four member committee headed by whom to clear the ambiguity between Foreign Direct Investment (FDI) and Foreign Institutional Investment (FII) terms in Oct 2013?

(A) Bimal Jalan

(B) Mukul Mudgal

(D) A.P. Shah

Ans. (C) Arvind Mayaram

10. The Government of India launched a unique project to put 100 most important Indian heritage sites online in collaboration with which IT/Internet giant in Oct 2013?

(A) Google

(B) Yahoo

(D) Amazon

Ans. (A) Google

1) India Post has launched Instant Cash in Oct 2013. Instant Cash is an instant electronic money transfer service launched in partnership with which company?

(A) Wall Street Exchange

(B) Moneygram

(D) Western Union

Ans. (A) Wall Street Exchange

2) Which organization won the Nobel peace prize 2013 (announced in Oct 2013)?

(A) European Union

(B) Organisation for the Prohibition of Chemical Weapons (OPCW)

(D) Red Cross

Ans. (B) Organisation for the Prohibition of Chemical Weapons (OPCW)

3) Who has been ranked as India’s richest women as per the latest Forbes list published by the magazine in Oct 2013?

(A) Indu Jain

(B) Anu Aga

(D) Kiran Mazumdar Shaw

Ans. (C) Savitri Jindal

4) Which of the following Indian district has been termed as the first zero-landless district in the country in Oct 2013?

(A) Alappuzha

(B) Ernakulam

(D) Kollam

Ans. (C) Kannur

5) Who has been appointed as the Chairperson of India’s largest bank, State Bank of India in Oct 2013?

(A) Nishi Vasudeva

(B) Shubhalakshmi Panse

(D) Archana Bhargava

Ans. (C) Arundhati Bhattacharya

6) SEBI and FIPB have approved Jet-Etihad deal in Oct 2013. As a part of the deal, Etihad will acquire __________ stake in Jet Airways to Etihad.

(A) 51%

(B) 24%

(D) 76%

Ans. (B) 24%

7) Indian mobile phone maker Micromax has roped in which Hollywood star as its brand ambassador to expand in the overseas market in Oct 2013?

(A) Russell Crowe

(B) Christian Bale

(D) Robert Downey Jr.

Ans. (C) Hugh Jackman

8) Which Indian PSU Bank has agreed take over the Amanath Cooperative Bank after board meeting held in Oct 2013?

(A) Punjab National Bank

(B) Canara Bank

(D) Bank of Maharashtra

Ans. (B) Canara Bank

9) 23rd ASEAN Summit 2013 held in Oct 2013 in which city?

(A) Manila

(B) Kuala Lumpur

(D) Bangkok

Ans. (C) Brunei

10) Which Indian Telecom company has launched M-Pesa, its trademarked mobile money transfer and payment service in Maharashtra in association with ICICI Bank in Oct 2013?

(A) Airtel

(B) Vodafone

(D) Idea

Ans. (B) Vodafone

1. Which bank(the biggest US bank by assets) said 15 Nov 2013, it has agreed to pay $4.5 billion to settle claims by investors who lost money on mortgage-backed securities before the collapse of the US housing market?

(A)JPMorgan Chase & Co

(B) Lehman Brothers

(D) Bank of America

Ans. (A) JPMorgan Chase & Co

2. President Pranab Mukherjee released a postal stamp to commemorate which anniversary of The Times of India in an elegant ceremony at the Rashtrapati Bhawan on 14th Nov 2013?

(A) 50th

(B) 100th

(D) 175th

Ans. (D) 175th

3. Headline inflation at a high percent and rising food prices are definitely not a good sign for the economy. October WPI inflation figure released on 14^th November 2013 stands at 8-month high. What is WPI (Wholesale Price Index) for October 2013?

(A) 6.2 %

(B) 6.6 %

(D) 7 %

Ans. (D) 7 %

4. Global professional services firm Ernst & Young has appointed whom as its new Global Chairman and CEO in July 2013?

(A) Gary Kenneth Toomey

(B) Mark Weinberger

(D) Etienne Benet

Ans. (B) Mark Weinberger

5. India has been ranked _______ among 142 countries in the Global Innovation Index 2013 published in July 2013?

(A) 61st

(B) 66th

(D) 70th

Ans. (B) 66th

6. The Inter-ministerial body Telecom Commission has approved to raise foreign direct investment limit in the telecom sector from current 74% to _________ in July 2013.

(A) 95%

(B) 90%

(D) 91%

Ans. (C) 100%

7. Which Indian state was declared as the first Smoke-free state of the country in July 2013?

(A) Haryana

(B) Punjab

(D) Gujarat

Ans. (C) Himachal Pradesh

8. Which country joined the European Union as the 28th member of the Union in July 2013?

(A) Norway

(B) Latvia

(D) Turkey

Ans. (C) Croatia

9. Who has been appointed as Director General of Bureau of Indian Standards (BIS) in July 2013?

(A) Sujata Singh

(B) Sunil Soni

(D) Sharad Gupta

Ans. (B) Sunil Soni

10. Who has been appointed as Managing Director of UTI Mutual Fund in July 2013?

(A) Leo Puri

(B) Deepak Parekh

(D) None of These

Ans. (A) Leo Puri

1. Which Financial Company has secured approval from the Foreign Investment Promotion Board (FIPB) to set up white-label ATMs in India in Sep 2013?

(A) State Bank of India

(B) Reliance Capital

(D) IFCI

Ans. (C) Muthoot Finance

2. Which Indian Officer was elected as regional director at the 31st meeting of health ministers and 66th session of WHO regional committee for South-East Asia in Sep 2013?

(A) Deepak Sandhu

(B) Rakesh Sood

(D) None of These

Ans. (C) Poonam Khetarpal Singh

3. Yahoo Inc has appointed which veteran technology executive and Silicon Valley investor as its new chairman in August 2013?

(A) Alfred J. Amoroso

(B) Stratton Sclavos

(D) Roy J. Bostock

Ans. (C) Maynard Webb

4. India has signed a loan agreement with the World Bank worth of _________ for its Low Income Housing Finance Project in August 2013.

(A) USD 50 million

(B) USD 150 million

(D) USD 200 million

Ans. (C) USD 100 million

5. Saba Anjum received the Arjuna award – 2013, presented in August 2013. She is associated with which sport?

(A) Hockey

(B) Wrestling

(D) Football

Ans. (A) Hockey

6. Religare Health Insurance has signed a deal with which Indian PSU bank in Sep 2013 to market its product and service bouquet through the distribution network of the bank?

(A) Union Bank of India

(B) IDBI Bank

(D) Allahabad Bank

Ans. (A) Union Bank of India

7. Who has been appointed as the Chairman and Managing Director of Power Finance Corporation Ltd (PFC) by the Government of Indian in Sep 2013?

(A) Satnam Singh

(B) BN Talukdar

(D) Nishi Vasudeva

Ans. (C) M.K. Goel

8. The government approved the proposal of _________ capital infusion in Export-Import Bank of India in Sep 2013 to support future growth of the lender.

(A) Rs 1000 crore

(B) Rs 700 crore

(D) Rs 800 crore

Ans. (B) Rs 700 crore

9. Prime Minister’s key economic advisor C Rangarajan has lowered the growth forecast for the current fiscal to ________ in Sep 2013.

(A) 5.9%

(B) 5.3%

(D) 6.5%

Ans. (B) 5.3%

10. Which state/UT has the highest par capital annual income in India with per capita annual income of Rs. 2.01 lakh in 2012-13?

(A) Chandigarh

(B) Delhi

(D) Maharashtra

Ans. (B) Delhi

One shortcut tricks I want to share.

Here One shortcut tricks I want to share...

1*1=1

2*2=4

3*3=9

4*4=16

....

.....

Carry on

One things observes here that

Any number square is = Previous number square + (double the number-1)

Means suppose 51 squares = 50 square (2500) + (51*2 -1)101

=2500+101

=2601

IBPS Interview Question

Questions

1.Introduce yourself / Tell me about you

There is greater chance that your first question is tell me about yourself or introduce yourself.They want to know about your background and other details with this question.Many interviewers use answer of this question to ask second question.If you are in a panel focusing on HR questions then this is must question.

2.Hobbies and extra curricular activities

Sometimes interviews do ask questions about your hobby and extra curricular activities.They assume that you should be able to answer questions related to your hobby.This is really important.So prepare well for questions related to your hobby.

3.Related to your family

It sometimes gets very interesting as well as irritating for candidates.Lets say your father is a business man.Then they will say Why do not you join your father’s business instead of joining as Bank Clerk.Again if your brother is in different occupation then they might say Why instead of choosing that career you are selecting IBPS Clerk? Through these questions they really want to know the reason of joining as Bank Clerk.

4.Related to your education

Related to Education arises

If you have gap in education.
You have gap after your last degree.
You have good marks in 10th or 12th but nor so good in graduation or other way around.

SBI Recruitment for the Clerical Cadre Posts of Pharmacists, Control Room Operators and Armourers

Recruitment In SBI

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Click Here For Apply : Apply Online

Online registration From : 08/11/2013

Last date for online Registration : 22/11/2013

Payment of fees - online : 08/11/2013 - 22/11/2013

Payment of fees at branches : 11/11/2013 - 26/11/2013

SBI Recruitment for Chief Technology Officer

For Details Click Here : Recruitment of Chief Technology Officer in SBI

Click Here For Apply: Download Application Form

Last date for receipt of application by e-mail : 07/12/2013

Last date for receipt of Hard Copy with testimonials : 14/12/2013

IBPS Recruitment For SPECIALIST OFFICERS

For Details Click Here : Common Written Examination for Specialist Officers 3

Online Registration starts from 25.11.2013

During exam preparations

During exam preparations

1. Learn tables, squares and cubes

Learn tables up to 35 thoroughly. Similarly squares up to 50 (Squaring Technique)and cubes up to 20. It really makes calculations easy and increase your question solving ability. Most of the candidates fails due to lack of time and major part of their time is wasted on calculations in quantitative and reasoning section.

2. Learn some shortcuts

There are too many short-term tricks to solve quantitative problems. For every chapter let it time distance, number system, profit and loss or equation, there are shortcuts available. You can download some shortcut notes. I found a nice book Quicker Maths, this book has hundreds of short tricks, every institute make notes from this book. Refer to my earlier post to find this book online.

3. Refer to some comprehensive books

Many students try to score well just by solving some question from magazines and workbooks. Although these methods are good to increase your scores after you learn all the basics. But to learn basics you need to refer some good books. Read my earlier post to learn more about beat books for bank exams preparations.

4. Solve, solve and solve

The more questions you solve, higher your accuracy will be. Try to solve more questions of each chapter. Solve question of every type whichever you face.

During exam

1. Skip questions

Out of 50 questions you need to score 20+ . There are 5-6 questions of high difficulty level, it's better to skip them then wasting time on them. Finding and skipping long and difficult is a skill, you need to master this. Even in 4-5 questions set of quantitative or receiving asking section, if you are not able to understand the question or clueless about how to solve it, skip it or you will end having very low attempt.

2. Play with options

7-8 questions in an exam can be solved just by eliminating the options. Take an example,

A man bought 18 oranges for 100 rupees and sold 12 oranges for 100 rupees. Calculated profit percentage.

a) 33.333%

b) 50%

c) 66.666%

d) Can't be determined

It can be easily seen that man saved 50% of what he sold. He saved 6 oranges while he sold 12 oranges. Clearly answer is 50%

3. Estimation

Try to estimate answer. You can 't solve 200 and more questions in 2 hours. This trick can be used in profit and loss, time distance, data interpretation and many more chapters.

4. Take 100 as base

Many questions can be solved just by taking 100 as base. Take an example

What is the percentage profit in selling an article in discount of 20% which was earlier sold for 40% profit ?

a) 20%

b) 14%

c) 28%

d) 12%

Solution : Lets take Rs.100 as cost of article. Man was selling the article for Rs140 ( 100 cost + 40 profit ) , now he is selling at a discount of 20% , now 140*20/100 = 28. New selling price = 140-28 = 112

Answer is D

Syllabus for IBPS Clark 2013

General Awareness:
As you all know, there is no such a syllabus for General Awareness for any competitive examination. However, candidates need to have good knowledge of current affairs as well as what is happening in India. Check out the topic may be asked in upcoming IBPS clerk exam 2013.
Current Affairs
Ministers & portfolios
Abbreviations
Top news in business, sports, culture & entertainment
Prominent committees & their heads
Computer Knowledge:
Main Topics To Prepare Are As Follows
Computer parts & their functions
Basic internet & email controls
MS Office package (word, excel, power-point etc)
Popular software, Hardware names & their uses
Reasoning:
Reasoning is one of easiest section in IBPS Clerk exam.
Number series
Coding & decoding
Syllogisms
Venn diagrams
Numerical Ability:
Candidates need to focus as much as they can on it. Numerical Ability is one of the most important section in IBPS Clerk exam 2013.
Number System, Simplification
Work and Time, Time and Distance, Problem on Train, Boat & Stream
Profile & Loss, Percentage
Ratio & Proportion, Partnership
Simple Interest, Compound Interest

Glossary of Banking , Economic and Financial Terms

Some Economic ,Banking and Financial Terms for all Non - Commerce Background Candidates:

Active Market

This is a term used by stock exchange which specifies the particular stock or share which deals in frequent and regular transactions. It helps the buyers to obtain reasonably large amounts at any time.

Administered Price

The administrative body e.g., the government a marketing board or a trading group determines this price. The competitive market force are not entitled to determine this price. The government fixes a price in accordance with demand supply portion in the market.

Ad-valorem TaxAd-valorem tax is a kind of indirect tax in which goods are taxed by their values. In the case of ad-volorem tax, the tax amount is calculated as the proportion of the price of the goods. Value added Tax (VAT) is an ad-volorem Tax.

Advanced Countries

Advanced countries are countries which are industrially advanced, having high national and per capita income and ensure high rate of capital formation. These countries possess highly developed infrastructure and apply most updated and advanced technical know-how in their productive activities. A strong and well organised financial structure is found in these advanced countries.

Amalgamation

It means ‘merger’. As and when necessity arises two or more companies are merged into a large organisation. This merger takes place in order to effect economies, reduce competition and capture market. The old firms completely lose their identity when the merger takes place.

Appreciation

Appreciation means an increase in the value of something e.g., stock of raw materials or manufactured goods. It also includes an increase in the traded value of a currency. It is the antonym of Depreciation. When the prices rise due to inflation, appreciation may occur. It causes scarcity or increase in earning power.

Arbitrage

When a person performs functions of middle man and buys and sells goods at a particular time to cash the price differences of two markets, this action is termed as arbitrage. Purchases are made in the market where price is low and at the same time, goods are sold in other market where the price are high. Thus the middleman earns profit due to price difference in two markets.

Arbitration

Where there is an industrial dispute, the Arbitration comes to the force. The judgement is given by the Arbitrator. Both the parties have to accept and honour the Arbitration. Arbitration is the settlement of labour disputes that takes place between employer and the employees.

Auction

When a commodity is sold by auction, the bids are made by the buyers. Whose ever makes the highest bid, gets the commodity which is being sold. The buyers make the bid taking into consideration the quality and quantity of the commodity.

Autarchy

If a country is self-sufficient, it does not require the imports for the country. Autarchy is an indicator of self-sufficiency. It means that the country itself can satisfy the needs of its population without making imports from other countries.

Automation

Automation means the use of machinery & technology to replace the labour’s work. Automation increases the demand of skilled workers. Unskilled and semiskilled workers are reduced as a result of automation.

Balanced Budget

When the total revenue of the government exactly equals the total expenditure incurred by the government, the budget becomes a balanced budget. But it is a conservative view point. In present days, the welfare government has to regulate a number of economic and social activities which increase the expenditure burden on the government and results in deficit budget.

Balance of Payment

Balance of payment of a country is a systematic record of all economic transactions completed between its residents and the residents of remaining world during a year. In other words, the balance of payment shows the relationship between the one country's total payment to all other countries and its total receipts from them. Balance of payment is a comprehensive term which includes both visible and invisible items. Balance of payment not only include visible export and imports but also invisible trade like shipping, banking, insurance, tourism, royalty, payments of interest on foreign debts.

Balance of Trade

Balance of trade refers to the total value of a country's export commodities and total value of imports commodities. Thus balance of trade includes only visible trade i.e., movement of goods (exports and imports of goods). Balance of trade is a part of Balance of payment statement.

Balance Sheet

Balance sheet is a statement showing the assets and liabilities of a business at a certain date. Balance sheet helps in estimating the real financial situation of a firm.

Bank

Bank is a financial institution. It accepts funds on current and deposit accounts. It also lends money. The bank pays the cheques drawn by customers against current and deposits accounts. The bank is a trader that deals in money and credit.

Bank Draft

Banker's draft is a negotiable claim drawn upon a bank. Drafts are as good as cash. The drafts cannot be returned and unpaid. Draft is issued when a customer shows his unwillingness to accept cheque in payment for his services or mercantile goods. Bank Draft is safer than a cheque.

Bank Rate

Bank Rate is the rate of discount at which the central bank of the country discounts first class bills. It is the rate of interest at which the central bank lends money to the lower banking institutions. Bank rate is a direct quantitative method of credit control in the economy.

Bilateralism

It implies an agreement between two countries to extend to each other specific privileges in their international trade which are not extended to others.

Birth Rate

Birth Rate (or Crude Birth Rate) is number of the births per thousand of the population during a period, usually a year. Only live births are included in the calculation of birth rate.

Black Money

It is unaccounted money which is concealed from tax authorities. All illegal economic activities are dealt with this black Money. Hawala market has deep roots with this black money. Black money creates parallel economy. It puts an adverse pressure on equitable distribution of wealth and income in the economy.

Blue Chip

It is concerned with such equity shares whose purchase is extremely safe. It is a safe investment. It does not involve any risk.

Blue Collar Jobs

These Jobs are concerned with factory. Persons who are unskilled and depend upon manual jobs that require physical strain on human muscle are said to be engaged in Blue Collar Jobs. In the age of machinery, such Jobs are on the decline these days.

Brain-Drain

It means the drift of intellectuals of a country to another country. Scientists, doctors and technology experts generally go to other prominent countries of the world to better their lot and earn huge sums of money. This Brain-Drain deprives a country of its genius and capabilities.

Bridge Loan

A loan made by a bank for a short period to make up for a temporary shortage of cash. On the part of borrower, mostly the companies for example, a business organization wants to install a new company with new equipments etc. while his present installed company / equipments etc. are not yet disposed off. Bridge loan covers this period between the buying the new and disposing of the old one.

Budget

It is a document containing a preliminary approved plan of public revenue and public expenditure. It is a statement of the estimated receipt and expenses during a fixed period, it is a comparative table giving the accounts of the receipts to be realized and of the expenses to be incurred.

Budget Deficit

Budget may take a shape of deficit when the public revenue falls short to public expenditure. Budget deficit is the difference between the estimated public expenditure and public revenue. The government meets this deficit by way of printing new currency or by borrowing.

Bull

Bull is that type of speculator who gains with the rise in prices of shares and stocks. He buys share or commodities in anticipation of rising prices and sells them later at a profit.

Bull Market

It is a market where the speculators buy shares or commodities in anticipation of rising prices. This market enables the speculators to resale such shares and make a profit.

Buoyancy

When the government fails to check inflation, it raises income tax and the corporate tax. Such a tax is called Buoyancy. It concerns with the revenue from taxation in the period of inflation.

Business Cycle

Business cycle (also known as trade cycle) are species of fluctuations in the economic activity of organised communities. It is composed of period of good trade characterized by rising prices and low unemployment, alternating with period of bad trade characterised by falling prices and high unemployment. Every trade cycle have five different subphases–depression, recovery, full employment, prosperity (boom) and recession.

Call Money

Call money is in the form of loans and advances which are payable on demand or within the number of days specified for the purpose.

Capital Budgeting

Capital budgeting represents the process of preparing budget for a period of a year or even for several years allocating capital outlays for the various investment projects. In other words, it is the process of budgeting capital expenditure by means of an annual or longer period capital budget.

Capital-labour Ratio

Latest models of machinery and equipment raise the labour efficiency and the output is maximized. Capitallabour ratio is the amount of capital against the given labours that a firm employs. Capital-labour ratio is the ratio of capital to labour.

Capital Market

Capital market is the market which gives medium term and long term loans. It is different from money market which deals only in short term loans.

Capitalism

Capitalism is an economic system in which all means of production are owned by private individuals Selfprofit motive is the guiding feature for all the economic activates under capitalism. Under pure capitalism system economic conditions are regulated solely by free market forces. This system is based on ‘Laissez-faire system’ i.e., no state intervention. Sovereignty of consumer prevails in this system. Consumer behaves like a king under capitalism.

Cash Reserve Ratio (CRR)

The commercial banks are required to keep a certain amount of cash reserves at the central bank. This percentage amount is called CRR. It influences the commercial bank’s volume of credit because variation in CRR affects the liquidity position of the banks and hence their ability to lend.

Census

Census gives us estimates of population. Census is of great economic importance for the country. It tells us the rate at which the total population is increasing among different age groups. In India census is done after every 10 years. The latest census in India has been done in 2001.

Central Bank

Central Bank may be defined as the apex barking and monetary institution whose main function is to control, regulate and stabilize the banking and the monetary system of the country in the national interest.

Cheque

Cheque is an order in writing issued by the drawer to a bank. If the customer has sufficient amount in his account, the cheque is paid by the bank. Cheques are used in place of cash money.

Clearing Bank

Clearing bank is one which settles the debits and credits of the commercial banks. Even of the cash balances are lesser, clearing bank facilitates banking operation of the commercial bank.

Clearing House

Clearing house is an institution which helps to settle the mutual indebtedness that occurs among the members of its organisation.

Closed Economy

Closed economy refers to the economy having no foreign trade (i.e., export and import). Such economies depend exclusively on their own internal domestic resources and have
no dependence on outside world.

Collusion

Producers of an industry reduce competition among themselves to raise their profits. They fix the price themselves with a clear understanding in this regard. This understanding among different firms is called collusion.

Coinage

Art and practice of making coins is called coinage. The metal is melted and moulded to shape into a coin. The coinage is a medium of exchange (money).

Collectivism

Collectivism is a belief that nation's interest is superior to individual interest. This is the collective thinking of the society and polity national leaders and also communist opine the theory of collection.

Commercial Bank

Commercial Bank is an institution of finance. It deals with the banking services through its branches in whole of the country. Operation of current accounts, deposits, granting of loans to individuals and companies etc. are various functions of the commercial bank.

Communism

Communism is a political and economic system in which the state makes the major economic decision State owns the bulk of capital assets. Responsibility for production and distribution lies with the state in this system.

Core Sector

Economy needs basic infrastructure for accelerating development. Development of infrastructure industries like cement, iron and steel, petroleum, heavy machinery etc. can only ensure the development of the economy as a whole. Such industries are core sector industries.

Corporation Tax

It is a tax on company's profit. It is a direct tax which is calculated on profits after interest payments and allowance (i.e., Capital allowance) have been deducted but before dividends are allowed for.

Cost-push Inflation

It arises due to an increase in production cost. Such type of inflation is caused by three factors : (i) an increase in wages, (ii) an increase in the profit margin and (iii) imposition of heavy taxation.

Credit Rationing

Credit rationing takes place when the banks discriminates between the borrowers. Credit rationing empowers the bank to lend to some and to refuse to lend to others. In this way credit rationing restricts lending on the part of bank.

Credit Squeeze

Monetary authorities restrict credit as and when required. This credit restriction is called credit squeeze. Monetary authorities adopt the policy of credit squeeze to control inflationary pressure in the economy.

Custom Duty

Custom duty is a duty that is imposed on the products received from exporting nations of the world. It is also called protective duty as it protects the home industries.

Cyclical Unemployment

It is that phase of unemployment which appears due to the occurrence of the downward phase of the trade cycle. Such an employment is reduced or eliminated when the business
cycle turns up again.

Dear Money

Dear money is that money which can only be borrowed at a high rate of interest. In dear money policy, bank rate and other rates of interest are high and as a result borrowing becomes expensive. Dear money policy is deliberate policy which is adopted by the monetary authorities to check inflation in the economy.

Death Duty

It is a direct tax which is imposed on the estate of deceased person. Death duty or Death Tax is a form of personal tax on property which is levied when property passes from one person to other at the time of death of the former.

Death Rate

Death rate signifies the number of deaths in a year per thousand of the population. It is mostly known as crude death rate. Life expectancy is important determinant of death rate.
A country having high life expectancy will have a high crude death rate.

Decentralisation

Decentralization means the establishment of various unit of the same industry at different places. Large scale organization or industry can not be run at one particular place or territory. In order to increase the efficiency of the industry, various units at different places are located.

Debt Service (Total)

The sum of principal repayments and interest actually paid in foreign currency, goods and services on longterm debt (having maturity of more than one year), interest paid on shortterm debt and repayments to IMF.

Deficit Financing

It is a practice resorted to by modern government of spending more money than it receives in revenue. It is a policy of bridging a deficit between governments expenditure and revenue. Deliberately budgeting for a deficit is called deficit financing. This practice was popularised by Prof. J. M. Keynes to deal with the depression and unemployment situations and to stimulate economic activity. Deficit financing, though having inflationary effects, has now become a common practice in all countries.

Deflation

Deflation is the reverse case of inflation. Deflation is that state of falling prices which occurs at that time when the output of goods and services increases more rapidly than the volume of money in the economy. In the deflation the general price level falls and the value of money rises.

Devaluation

The loss of value of currency of a country relative to other foreign currency is known as devaluation. Devaluation is a process in which the government deliberately cheapens the exchange value of its own currency in terms of other currency by giving it a lower exchange value. Devaluation is used for improving, the balance of payment situation in the country.

Direct Tax

A tax is said to be a direct tax when it is not intended to be shifted to anybody else. The person who pays it in the first instance is also excepted to bear it. Thus the impact and incidence of direct tax fall on the same person shifting of direct tax is not possible Income Tax is a example of direct tax.

Disinflation

It refers to a process of bringing down prices moderately from their high level without any adverse impact on production and employment. Thus, disinflation is an anti-inflationary measure.

Dissaving

Dis-saving occurs when expenditure exceeds income. Raising of loans or utilization of past accumulated savings takes place in such eventuality.

Dividend

Dividend is the amount which the company distributes to shareholders when the profits of the company are calculated by the board of directors.

Economic Integration

Economic integration appears when two or more nations coordinate themselves and their economies are linked up. It may exhibit itself in the form of free trade area or a full economic union. EEC is an example of economic integration.

Engel's Law

This law was formulated by Ernst Engel. This law states that, with given taste and preference, the portion of income spend on food diminishes as income increases. According to this law, smaller a person's income, the greater the proportion of it that he will spend on food and vice versa.

Estate Duty

It is a tax which is levied on the estate of a decreased person. It is also known as death duty. The ownership of state changes hands only after the payments of the estate duty. It is an progressive tax in nature.

Excise Duty

It is a tax which is imposed on certain indigenous production (e.g., petroleum products, cigarettes etc.) of the country. Excise duty may be imposed either to raise revenue or to check the consumption of the commodities on which they are imposed. Excise duty is progressive in nature.

Face Value

It refers to that normal value of coin at which the coin circulates and is accepted in the discharge of debit or obligation. Broadly speaking, the face value refers to domination stamped on a coin / or documents when it is issued. In securities, it refers to par value.

Fascism

It is a form of political system. In it every economic consideration rests on one criterion—the increase in the people's standard of living. It also lays emphasis on military
strength and prestige of the country. It is the extreme nationalism and the ultimate goal is self-sufficiency.

Federal Economy

It refers to a federation which is an association of two and more states. A federal state is a union of state in which authority is divided between the federal (or central) government and the state governments. In a federal economy both the center and the states are independent in the exercise of this authority.

Fiduciary Issue

Generally bank-note are backed by gold. But when they are not backed by gold and government securities replace gold, it is called fiduciary issue. Such fiduciary issue results in inflation.

Fertility Rate

The term fertility refers to the actual bearing of children or ‘occurrence of births’. Fertility rate measures the average number of the live births per 1000 women. This rate is one of the most important and useful aids to population projection. It helps in assessing population trends in the economy.

Fiscal Policy

Fiscal policy is that part of government economic policy which deals with taxation, expenditure, borrowing, and the management of public debt in the economy. Fiscal policy primarily concerns itself with the flow of funds in the economy. Fiscal policy primarily concerns itself with the flow of funds in the economy. It exerts a very powerful influence on the working of economy as a whole.

GEM

GEM (Gender Empowerment Measure) is a composite index measuring gender inequality in three basic dimensions of empowerment–economic participation and decision making, political participation and decision making, and power over economic resources.

GDI

GDI (Gender Related Development Index) is a composite index measuring average achievement in the three basic dimensions captured in the human development index–a long and healthy life, knowledge and a decent standard of living–adjusted to account for inequalities between men and women.

Gini-coefficient

It represents the measurement of inequality derived from the ‘Lorenz Curve,’ with every increase in the degree of inequality, the curvature of the Lorenz Curve also increases and
the area between the curve and 45° line becomes larger.
The Gini-coefficient is measured as—
G =Area between Lorenz Curve & 45° Line/Area above the 45° Line

Giffin Goods

Giffin goods have the positive relationship between price and quantity demanded and as a result demand curve of Giffin goods slopes upward from left to right. This phenomenon was first observed by Sir Robert Giffin in relation to the demand for bread by poor labours.

Gresham's Law

“Bad money (if not limited in quantity) drives good money out of circulation”—This statement was given by Sir Thomas Gresham, the economic Adviser of Queen Elizabeth. This law states that people always want to hoard good money and spend bad money when two forms of money are in circulation at the same time.

Gross Domestic Product (GDP)

It is the money value of all final goods and services produced within the geographical boundaries of the country during a given period of time (usually a year). GDP can be calculated both at current prices and at constant prices. If we add net factor income from abroad to the GDP, we get ‘Gross National Product’ (GNP).

Gross National Product (GNP)

It refers to the money value of total output or production of final goods and services produced by the nationals of a country during a given period of time, generally a year.

Gross National Product Deflator

It is a Price Index Number used to correct the money value of Gross National Product (GNP) for price changes so as to isolate the changes which have taken place in the physical output of goods and services.

Guild Socialism

This form of socialism accepts the leadership of artisans. The operation of the whole economy specially the management and control of industries lies in the hands of artisans Socialism established by artisans is termed a Guild Socialism.

HDI

HDI (Human Development Index) is a composite index measuring average achievement in three basic dimensions of human life–a long and healthy life, knowledge and a decent standard of living.

Import Duty

Import duty is a tax on imports imposed on an ad-valorem basis i.e., fixed in the form of a percentage on the value of the commodity imported.

Indirect Tax

Indirect tax is that tax which is levied on goods or services produced or purchased. Indirect taxes are those which are demanded from one person in the expectation and intention that he shall indemnify himself at the expense to another.

Inflation

A situation of a steady and sustained rise in general prices is usually known as inflation. Inflation is a state in which the value of money is falling i.e., prices are rising.

Joint Demand

Joint demand appears in case of complementary goods. When two commodities are complementary to one another and cannot be used separately, they have joint demand. Bread and butter, sugar and tea, pen and ink are a few examples of joint demand. In joint demand a change in demand of one commodity bring about the proportionate change in demand for the other.

Joint Sector

When a sector is jointly owned, managed and run by both public and private sector, it is called joint sector. This sector indicates the partnership between the two i.e., public and private sector.

Labour Union

Labour union represents that organisation of workers which works for improving working condition of labours and also for raising their wage by adopting ‘collective bargaining’ measures with the management of the industry in particular.

Laffer Curve

This curve is given by American economist Prof. Arthur Laffr. It represents relationship between total tax revenue and corresponding tax rates.

Laissez Faire

It is a French word meaning ‘non-interference’. This doctrine was popularised by classical economists who gave the view that government should interfere as little as possible in the economic activities of the individuals.

Life Expectancy at Birth

The number of years a newborn infant would live if prevailing pattern of age specific mortality rates at the time of birth were to stay the same throughout the child’s life.

Liquidation

It refers to the termination (or winding up) of a registered company. Liquidation takes place because of company's insolvency. In liquidation, assets are turned into cash for settling outstanding debts and for apportioning the balance, if any, amongst the owners.

Liquidity

Assets which can easily be converted into cash money are said to have liquidity. Land does not possess liquidity at it takes longer time to get converted into cash.

Liquidity Ratio

The commercial banks under banking regulations have to maintain a certain specified proportion of their total deposits of various categories in liquid assets. This maintainable proportion is called liquidity ratio.

Lock-out

Lock-out refers to such a situation when the management does not permit the workers to work unless they agree to accept the employer's term. Lock-out is the closing of work by the management for an uncertain period of time to put pressure on the labour union. It is an action by the employer equivalent to a strike by employees.

Lorentz Curve

This curve shows the degree of inequalities of a frequency distribution in a graphical manner. It is a curve on a graph which shows the cumulative proportion of a statistical population against this cumulative share of some characteristic. This curve is commonly used to depict income distribution showing the cumulative percentage of people from the poorest up and their cumulative share of national income.

Lump Sum Tax

Lump sum tax is a fixed amount which has imperative nature irrespective of the income level. This tax is not equitable in nature.

Merit Goods

Merit goods refer those goods that are very essential to the society as a whole and hence the government ensures their availability to all consumers, regardless of their ability to pay to reasonable price.

Mixed Economy

It refers to that economic system in which both private and public sector co-exists. Indian economy is an example of a mixed economy.

Monetary Policy

Monetary policy comprises all measures applied by the monetary authorities with a view to produce a deliberate impact on the nature and volume of money so as to achieve the objectives of general economic policy. It aims at regulating the flow of currency, credit and other money substitutes in an economy with a view to affect the total stock of such assets as well as to influence the demand of the community for such assets.

Monetary Reforms

When a new currency is introduced in a country due to hyperinflation or due to a deliberate policy measure (such as decimalization) it is termed as monetary reform.

Monopoly

Monopoly refers to that market structure where there is only one seller in the market who controls the entire market supply and no substitute of the product is available in the market.

Monopsony

Monopsony is that market situation in which there is only one single buyer of the product in the market. In other word, ‘buyer's monopoly’ is termed as monopsony.

Multinational Company

It is a large scale company which has its production base in several countries and the bulk of the production is produced in outside nations. This company produces more overseas
than they do in its parent country. Increased trade and economies of scale have encouraged such type of companies in the recent years.

National Income

In the simplest way it can be defined as ‘factor income accruing to the national residents of a country.’ It is the sum of domestic factor income and net factor income earned from abroad. Net national product at factor cost is called national income.

Net National Product (NNP)

When depreciation is deducted from GNP i.e., Gross National Product, we get Net National Product (NNP).

Oligopoly

Oligopoly is that form of imperfect competition in which there are only a few firms in the industry (or group) producing either homogeneous products or may be having product differentiation in a given line of production.

Open Economy

Open economy is that economy which is left free and the government imposes no restrictions on trade with areas outside that economy.

Okun’s Law

Arthur Okun presented an empirical relationship between cyclical movements in GNP and unemployment. Okun found that an annual 2•5% increase in the rate of real growth above the trend growth results in a 1% decrease in the rate of unemployment. This relationship is known as Okun’s Law.

Perfect Competition

Perfect competition is the market in which there are many firms selling identical products with no firm large enough relative to the entire market to be able to influence market price.

Poverty Line

Poverty line is a virtual line demarcating persons living below and above it. In India all those persons are treated living below poverty line who are not able to earn that much of income which is not sufficient to acquire food equivalent to 2100 calories per person per day in urban areas and 2400 calories per person per day in rural areas. As per UNDP, one US dollar (1993 PPP US $) per person per day is treated as poverty line.

PQLI

PQLI is known as Physical Quality of Life Index which is used to assess the level of social development. This index was developed by Jim Grant for The Overseas Development Council PQLI is calculated by using indices of (i) Adult literacy rate, (ii) IMR, (iii) Life Expectancy.

Price Mechanism

Price mechanism signifies the working of those market forces which establishes equilibrium in the economy. Laissez faire policy is the basis for the working of price mechanism.

Price Ring

It is an unofficial syndicate by which the prices are controlled with the prior understanding among the traders. These dealers under a price ring decide not to over-bid one another at the public auction to keep the prices low. This price ring may discourage outsiders from coming to the auctions.

Private Sector

Private Sector is that part of the economy which is not owned by the government and is under the hands of private enterprise. In other words, private sector is not under direct government control. Private sector includes the personal as well as the corporate sector.

Privatisation

Privatisation is the antithesis of nationalisation. When the government owned public industries are denationalised and the disinvestment process is initiated, it is called privatisation.

Public Debt

Public debt represents borrowing by the state and public authorities. All loans taken by the public authorities constitute public debt.

Public Goods

Public goods are those goods which belong to the entire community. None of the individual of the society can be made deprived of using these public goods. National defence, Police, Street lighting etc. are examples of public goods.

Public Sector

Public sector signifies those undertakings which are owned, managed and run by public authorities. Public sector includes direct government enterprise, the nationalized industries and public corporations. In this sector of the economy the government acts itself as an entrepreneur.

Peril Point

It indicates that point beyond which tariff reductions would threaten the existence of domestic industry.

Quick Asset

Those assets are quick assets which are liquid or nearly liquid in nature and easily be turned into cash.

Quoted Company

That company is called quoted company whose share prices are quoted on a stock exchange.

Reflation

It signifies general increase in the level of business activity in the economy. Reflation generally involves greater government expenditure and the easing of credit to encourage increased production.

Regressive Tax

It is a tax in which rate of taxation falls with an increase in income. In regressive taxation incidence falls more on people having lower incomes than that of those having higher incomes.

Repressed Inflation

It is a state in which aggregate demand is greater than the total supply of goods and services in an economy, but prices are prevented from rising to eliminate excess demand. The holding down of price is sometimes done by government as a means of suppressing inflation.

Reserve Asset Ratio

It is the ratio of a bank’s reserve assets to its eligible liabilities.

Revolving Credit

It is a bank credit that is renewed automatically until notice of cancellation is received. Revolving credits may be sanctioned for an unlimited amount in total but with a limit on
the amount that may be drawn at any one time or within a specified period, e.g., one month.

Seasonal Unemployment

It is that unemployment which is caused by seasonal variation in demand for labour by various industries, such as agriculture, construction and tourism. Seasonal unemployment
normally declines in spring as more outdoor work can be undertaken.

Security

Security refers to a share, bond or government stock that can be bought and sold, usually on the stock exchange or on a secondary market, and carries a right to some form of income, either in the form of a fixed rate of interest or dividends.

Shadow Price

It is an imputed value for a good based on the opportunity costs of the resources used to produce it such values are of particular significance in resolving problems of resource allocating with respect to the effect on welfare.

Share Capital

It is the amount of money raised by a company by issuing shares. The authorized share capital is the amount that a company is allowed to issue as laid down in its Articles of Association. The issued share capital is the amount actually issued i.e., the number of issued shares multiplied by their par value. Fully paid share capital is the amount raised by payment of the full par value of the issued shares.

Single Tax System

It is a system in which all tax revenues are raised from one form of taxation.

Socialism

The political doctrine that the means of production (machines, materials and output) should be owned by society and specifically either by the state, as in the case of nationalized industries or by the workers directly, as in the case of producer co-operatives.

Social Security

Provision by the state out of taxation of welfare assistance to those in need as a result of illness, unemployment, or old age compare national insurance refers to social security.

Soft Currency

A currency with limited convertibility into gold and other currencies, either because it is depreciating due to balance of payments difficulties or because controls have been placed on it to prevent the exchange rate falling.

Special Drawing Rights (SDRs)

It is a reserve asset (known as ‘Paper Gold’) created within the framework of the International Monetary Fund in an attempt to increase international liquidity, and now forming a part of countries official reserves along with gold, reserve positions in the IMF and convertible foreign currencies.

Special Tax (Unit Tax)

It is a tax imposed per unit of a commodity rather than on the value of the commodity compare ad-valorem.

Stabilization Policy

It is Government economic policy announced at reducing the cyclical and other fluctuations that take place in a market economy.

Stagflation

It is a state of the economy in which economic activity is slowing down, but wages and prices continue to rise. The term is a blend of the words stagnation and inflation.

Surplus Value

It is the difference between the amount paid to a factor and the revenue earned by selling the output it produced.

Tariff

It is a tax or a duty on imports, which can be levied either on physical units, e.g., per tonne (specific), or on value (ad-valorem). Tariffs may be imposed for a variety of reasons including; to raise government revenue, to protect domestic industry from subsidized or low-wage imports, to boost domestic employment, or to ease a deficit on the balance of payments.

Trade Gap

It signifies the size of the deficit (or surplus) in the balance of trade i.e., the difference in value between visible imports and exports.

Trade Union

It is an organisation of employees who join together to further their interests. Trade Unions negotiate on behalf of their members in collective bargaining with employers, and in the event of a dispute may put pressure on employers by withdrawing labour (i.e. strike) or by some less drastic form of action (i.e. go-slow, working to rule).

Transfer Payment

It is a payment made by public authority other than one made in exchange for goods or services produced. Transfer payments are not the part of National income. Examples includes unemployment benefit and child benefits.

Vital Statistics

Vital statistics refers to those data which are associated with vital events of masses like birth, death, marriage divorce etc.

VAT (Value Added Tax)

VAT seeks to tax the value added at every stage of manufacturing and sale, with a provision of refunding the amount of VAT already paid at the earlier stages to avoid double taxation. In other words, the tax already paid can be claimed at the next stage of value addition.

Wealth Tax

Wealth tax is that tax which is imposed on the value of total assets but the wealth upto a certain limit is exempted from such tax.

Welfare State

It refers to a nation that provides to all at least the minimum standards in respect of education, health, housing, pensions and other social benefits.

Wholesale Price Index

Wholesale Price Index is that index which is calculated on the basis of wholesale prices. It is calculated in a similar way to the Retail Price Index.

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