Definition: The term GDP stands for Gross Domestic Product, is a measure of market value of all finished goods and services which are newly produced, during a particular period and that too within the domestic territory of the country. The term domestic territory signifies a different meaning, concerning national income accounting, it includes: The area lying within the … [Read more...] about Gross Domestic Product (GDP)
Search Results for: inflation
Fiscal Policy
Definition: The Fiscal Policy implies the decisions taken by the government with respect to its revenue collection (through taxation), expenditure and other financial operations to accomplish certain national goals. The government uses its expenditure and taxation programmes to generate the desirable effects or eliminate the undesirable effects on the production, employment … [Read more...] about Fiscal Policy
Lending Margin
Definition: The Lending Margin refers to the gap between the value of the property mortgaged, against which the loan is borrowed, and the actual amount advanced to the borrower. In the above definition, Margin denotes the collateral that the investor has to deposit with a bank so as to cover some or all the credit risk as posed on the banks by the borrower. The risk arises … [Read more...] about Lending Margin
Statutory Liquidity Ratio
Definition: The Statutory Liquidity Ratio (SLR) refers to the proportion of deposits the commercial bank is required to maintain with them in the form of liquid assets in addition to the cash reserve ratio. In the definition, the liquid assets are the assets readily convertible into cash, includes government bonds, or government approved securities, gold, and cash reserve. … [Read more...] about Statutory Liquidity Ratio
Instruments of Monetary Policy
Definition: The Monetary Policy is a process whereby the monetary authority, generally the central bank controls or regulate the money supply in the economy. The central bank uses several instruments of monetary policy, referred to as monetary variables at its discretion, to regulate the credit availability and liquidity (money supply) in a manner that controls inflation and … [Read more...] about Instruments of Monetary Policy
Types of Monetary Policy
Definition: The Monetary Policy is a programme of action undertaken by the central banks and other regulatory bodies to control and regulate the money supply to the public and a flow of credit, so as to ensure the stability in price and trust in the currency by targeting the inflation rate and the interest rate. Simply, the process by which the monetary authority, generally … [Read more...] about Types of Monetary Policy
Monetary Policy
Definition: The Monetary Policy is the plan of action undertaken by the monetary authority, especially the central banks, to regulate and control the demand for and supply of money to the public and the flow of credit so as to achieve the macroeconomic goals. The goals of the monetary policy are to control the money supply and set the inflation rate and the interest rate at … [Read more...] about Monetary Policy
Demand Forecasting
Definition: Demand Forecasting refers to the process of predicting the future demand for the firm’s product. In other words, demand forecasting is comprised of a series of steps that involves the anticipation of demand for a product in future under both controllable and non-controllable factors. The business world is characterized by risk and uncertainty, and most of the … [Read more...] about Demand Forecasting
Consumer Price Index
Definition: The Consumer Price Index or (CPI) measure the change in the price level of a basket of consumer goods and services. In other words, consumer price index is a measure that computes a weighted average of the prices of each item included in the commodity basket, such as food, clothing, furniture, drinks, etc. The basket of goods and services refers to the fixed list … [Read more...] about Consumer Price Index
Indexation
Definition: Indexation is a method by which the prices, wages, and contracts are partially or wholly compensated for any change in the general price level. Indexation is not actually a method to control inflation, but rather is used to adjust monetary incomes with a view to minimizing the undue gains and losses suffered by the different sections of the society because of … [Read more...] about Indexation