Important Question for BCS/ Govt. or Bank Viva Candidate
1.
Capital budgeting: The process in which a business determines whether projects
such as building a new plant or investing in a long-term venture are worth
pursuing.
2.
Balance sheet: A financial statement that summarizes a company's assets,
liabilities and shareholders' equity at a specific point in time.
3.
Oligopoly: A situation in which a particular market is controlled by a small
group of firms. An oligopoly is
much like a monopoly.
4.
Public goods: A product that one individual can consume without reducing its
availability to another individual and from which no one is excluded.
Economists refer to public goods as "non-rivalrous" and
"non-excludable". National defense, sewer systems, public parks and
basic television and radio broadcasts could all be considered public goods.
5.
Treasury bill: Treasury Bills issued by the government as
an important tool of raising public finance with a maturity of less
than one year.
6.
Bill of exchange: A non-interest-bearing written order used primarily in
international trade that binds one party to pay a fixed sum of money to another
party at a predetermined future date.
7.
Cartel: An organization created from a formal agreement between a group of
producers of a good or service, to regulate supply in an effort to regulate or
manipulate prices.
8.
Monetary policy: The actions of a central bank, currency board or other
regulatory committee that determine the size and rate of growth of the money
supply, which in turn affects interest rates. Monetary policy is maintained
through actions such as increasing the interest rate, or changing the amount of
money banks need to keep in the vault (bank reserves).
9.
Fiscal policy: In economics and political science, fiscal
policy is the use of government revenue collection (taxation) and
expenditure (spending) to influence the economy. The two main instruments
of fiscal policy are changes in the level and composition of taxation and
government spending in various sectors. Through fiscal policy, regulators
attempt to improve unemployment rates, control inflation, stabilize business
cycles and influence interest rates in an effort to control the economy.
10. Gross domestic product (GDP) is the market
value of all officially recognized final goods and services produced within a
country in a given period of time.
11.
Gross national product (GNP) is the market value of all the products and
services produced in one year by labor and property supplied by the residents
of a country. Unlike Gross Domestic Product (GDP), which defines
production based on the geographical location of production, GNP allocates
production based on ownership.
12.
dear-money policy: A policy in which a government reduces the amount of money
being spent in an economy by raising interest rates, making it more expensive
to borrow money.
13. Dear money: money
which has to be borrowed at a high interest rate, and so restricts expenditure
by companies.
14.
A clearing house is
a financial institution that provides clearing and settlement services for
financial and commodities derivatives and securities transactions.
15.
Call Money: Money loaned by a bank that must be repaid on demand. Unlike a term
loan, which has a set maturity and payment schedule, call money does not have
to follow a fixed schedule.
16. Money laundering refers
to a financial transaction scheme that aims to conceal the identity, source,
and destination of illicitly-obtained money.
17.
Rate of return: The gain or loss on an investment over a specified period,
expressed as a percentage increase over the initial investment cost.
18.
Mobile banking is a system that allows customers of a financial
institution to conduct a number of financial transactions through a mobile
device such as a mobile phone or personal digital assistant.
19.
In economic theory, perfect competition (sometimes called pure competition)
describes markets such that no participants are large enough to have
the market power to set the price of a homogeneous product.
20.
A perfect market structure in which the following five criteria are met: a) All
firms sell an identical product; b) All firms are price takers - they
cannot control the market price of their product; c) All firms have a
relatively small market share; d) Buyers have complete information about the
product being sold and the prices charged by each firm; and e) The industry is
characterized by freedom of entry and exit. Perfect competition is sometimes
referred to as "pure competition".
21.
Monopoly: A situation in which a single company or group owns all or nearly all
of themarket for a given type of product or service. By definition,
monopoly is characterized by an absence of competition, which often results in
high prices and inferior products.
22.
Monopsony: A market similar to a monopoly except that a large buyer not seller
controls a large proportion of the market and drives the prices down. Sometimes
referred to as the buyer's monopoly.
23.
Multinational company: A corporation that has its facilities and other assets
in at least one country other than its home country. Such companies have
offices and/or factories in different countries and usually have a centralized
head office where they co-ordinate global management.
24.
Stagflation is a term used in economics to describe a situation where
an inflation rate is high, the economic growth rate slows down, and
unemployment remains steadily high. It raises a dilemma for economic
policy since actions designed to lower inflation may exacerbate
unemployment, and vice versa.
25.
Stablization policy: A macroeconomic strategy enacted by governments and
central banks to keep economic growth stable, along with price levels and
unemployment.
26.
Special drawing rights (SDRs) are supplementary foreign exchange
reserve assets defined and maintained by the International Monetary
Fund (IMF). Not a currency, SDRs instead represent a claim to currency
held by IMF member countries for which they may be exchanged.
27. Capital markets are
financial markets for the buying and selling of long-term debt- or equity-backed
securities.
28.
Soft currency: A currency with a value that fluctuates as a result of the
country's political or economic uncertainty. As a result of the of this
currency's instability, foreign exchange dealers tend to avoid it. Also
known as a "weak currency".
29.
Hard currency: A currency, usually from a highly industrialized country, that
is widely accepted around the world as a form of payment for goods and
services. A hard currency is expected to remain relatively stable through a
short period of time, and to be highly liquid in the forex market.
30.
Plastic money: debit cards, credit cards, used instead of cash.
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