{"id":71860,"date":"2019-08-29T09:17:40","date_gmt":"2019-08-29T09:17:40","guid":{"rendered":"http:\/\/perfectyourenglish.com\/blog\/?p=71860"},"modified":"2019-08-29T09:17:40","modified_gmt":"2019-08-29T09:17:40","slug":"financial-vocabulary-business-vocabulary","status":"publish","type":"post","link":"https:\/\/perfectyourenglish.com\/blog\/financial-vocabulary-business-vocabulary\/","title":{"rendered":"Financial Vocabulary | Business Vocabulary"},"content":{"rendered":"

Absolute monopoly<\/strong><\/p>\n

It refers to a condition of the market where only one seller has total command or control over the sale of a given article. In normal circumstances such a condition does not exist.<\/p>\n

Ad Valorem Duty<\/strong><\/p>\n

It refers to the duty or tax imposed on a commodity depending upon its value.<\/p>\n

Authorised capital<\/strong><\/p>\n

It refers to the maximum capital a public limited company can raise through public subscription by sale of shares.<\/p>\n

Balance sheet<\/strong><\/p>\n

Statement of account over a specified period of time showing assets and liabilities under specific heads from which the soundness or otherwise of an institution or organization is determined.<\/p>\n

Bank credit<\/strong><\/p>\n

Purchasing power provided by banks in excess of their cash balances, by reason of public confidence in their stability.<\/p>\n

Bank note<\/strong><\/p>\n

A promissory note issued by a bank payable to bearer on demand without interest and acceptable as money<\/p>\n

Barter<\/strong><\/p>\n

Trade by exchanging one commodity for another<\/p>\n

Bear<\/strong><\/p>\n

A stock exchange term denoting a falling market when speculators sell stock in the hope of buying again at lower prices<\/p>\n

Bearer cheque<\/strong><\/p>\n

A cheque that is encashable by bearer (person holding cheque)<\/p>\n

Black market<\/strong><\/p>\n

Profiteering (usually illegal) by hoarding and selling at exorbitant prices, without accounting or false accounting<\/p>\n

Black money<\/strong><\/p>\n

Money accumulated by way of illegal transactions without declaring it for tax purposes<\/p>\n

Bonus<\/strong><\/p>\n

Payment in addition to wages and salaries for employees, and in addition to dividend for shareholders<\/p>\n

Budget<\/strong><\/p>\n

A statement of anticipated revenue and expenditure of a sovereign body for a given period of time<\/p>\n

Budgetary deficit<\/strong><\/p>\n

The difference between all the receipts and the total expenditure<\/p>\n

Bull<\/strong><\/p>\n

It refers to that sort of a speculator, who stands to gain with a rise in the price of shares and stocks<\/p>\n

Buyer’s market<\/strong><\/p>\n

A market where goods and services are available in plenty and the prices are relatively low<\/p>\n

Capitalism<\/strong><\/p>\n

A system under which private entrepreneurs have complete freedom to devise and control production and distribution for their own profits, competition being the only limiting factor<\/p>\n

Cash ratio<\/strong><\/p>\n

It refers to the ratio of aggregate bank holdings of cash against its aggregate liabilities above a particular time<\/p>\n

Central bank<\/strong><\/p>\n

The apex bank which controls, supervises and guides the functioning of commercial banks in the country<\/p>\n

Closed economy<\/strong><\/p>\n

An economy which neither exports nor imports anything<\/p>\n

Letter of Credit<\/strong><\/p>\n

A letter from a bank, firm or from one person to another, authorizing payment of a specified sum to third person for which the sender assumes responsibility<\/p>\n

Crossed Cheque<\/strong><\/p>\n

A cheque crossed with two parallel lines and “&Co” written in between them. This is done as a safety measure. A crossed cheque is not to be paid on the counter. The amount is normally to be credited to the payee in his own account<\/p>\n

Current account<\/strong><\/p>\n

Bank account from which withdrawals are allowed without any restriction on frequency or amount, so long as there is a credit balance<\/p>\n

Customs duty<\/strong><\/p>\n

Tax on goods imported into and exported from a country<\/p>\n

Death duty<\/strong><\/p>\n

Also called estate duty. Tax payable on property, after death of the owner, by his heirs<\/p>\n

Debenture<\/strong><\/p>\n

Bond issued by an organization or undertaking to repay the amount with a specified interest after a specified period. Debenture holders are only creditors and not shareholders.<\/p>\n

Deficit financing<\/strong><\/p>\n

When expenditure exceeds revenue, paper currency is printed to fill the gap. It is beneficial when it creates greater productivity. If there is no adequate increase in productivity it will generate serious inflation.<\/p>\n

Deflation<\/strong><\/p>\n

It is the fall in prices, increase in unemployment, etc., as a result of less circulation of currency in the market<\/p>\n

Demonetization<\/strong><\/p>\n

It is the government act of depriving metallic coins or paper money of specified denomination or its status as money. This is resorted to unearth hidden wealth.<\/p>\n

Depreciation<\/strong><\/p>\n

In accounting, this is a percentage reduced from the value of machinery or fixed assets for wear and tear every year.<\/p>\n

Devaluation<\/strong><\/p>\n

It is the deliberate reduction in the value of home currency in relation to foreign currency<\/p>\n

Dividend<\/strong><\/p>\n

Share of the profits allotted to each share in a joint stock company<\/p>\n

Equity shares<\/strong><\/p>\n

They are ordinary shares with no guarantee of dividend. Equity shares gain maximum returns when there are high profits.<\/p>\n

Exchange rate<\/strong><\/p>\n

It refers to the rate at which the currency of one country exchanges with the currency of another country.<\/p>\n

Excise duty<\/strong><\/p>\n

Tax levied on certain goods produced and consumed in the country<\/p>\n

Gift tax<\/strong><\/p>\n

Gift on tax to prevent tax evasion by genuine or fictitious gifts<\/p>\n

Gross National Product<\/strong><\/p>\n

It is the total monetary value of all final goods and services produced in a country during one year<\/p>\n

Hard currency<\/strong><\/p>\n

Foreign exchange which is difficult to get.<\/p>\n

Inflation<\/strong><\/p>\n

Undue increase in quantity of money in proportion to purchasing power<\/p>\n

Mixed economy<\/strong><\/p>\n

An economic system where public and private sectors exist side by side<\/p>\n

Nationalisation<\/strong><\/p>\n

Government take-over of business, industrial or public utility services<\/p>\n

Net National Product<\/strong><\/p>\n

It is the gross national product minus allowance for depreciation of capital goods.<\/p>\n

Octroi<\/strong><\/p>\n

It is a tax charged by municipality or local body on the goods and commodities brought into town.<\/p>\n

Open economy<\/strong><\/p>\n

Economy that has trade relationships with other countries<\/p>\n

Per Capita Income<\/strong><\/p>\n

It is the average income of an individual wage earner in a country in one year<\/p>\n

Primary sector<\/strong><\/p>\n

It is the sector of the national economy which deals with the production of primary or raw materials, i.e., agriculture, mining etc.<\/p>\n

Public sector<\/strong><\/p>\n

Undertakings financed and operated by a government<\/p>\n

Secondary sector<\/strong><\/p>\n

It is the sector of the national economy which comprises manufacturing and processing industries<\/p>\n

Security<\/strong><\/p>\n

A guarantee in the form of cash, bonds, property etc., kept as pledge for repayment of debt or protection against financial loss<\/p>\n

Soft loan<\/strong><\/p>\n

It is a form of loan given either at a low rate of interest or without any interest.<\/p>\n

Turnover<\/strong><\/p>\n

The total value of the sales made by a company or firm in one accounting year is called the turnover.<\/p>\n

Wealth Tax<\/strong><\/p>\n

A tax imposed on the wealth possessed by individuals in a country<\/p>\n","protected":false},"excerpt":{"rendered":"

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