Indian Economy part 2

Glossary Indian economy part 2

1) Capital goods: Goods which are bought not for meeting immediate need of the consumer but for producing other goods.

2) Capitalist country/Economy: A country in which most of the production is carried out by capitalist firms.

3) Capitalist firms: These are firms with the following features(a) private ownership of means of production. (b) production for the market. (c) sale and purchase of labour at a price which is called the wage rate. (d) continuous accumulation of capital.

4) Cash reserve ratio(CRR): The fraction of their deposits which the commercial baks are required to keep with RBI.

5) Consumer durables: Consumption goods which do not get exhusted immediately but last over a period of time are consumer durables.

6) Consumer price index(CPI): percentage change in the weighted average price level.we take the prices of a given basket of consumption goods.

7) Corporate tax: Taxes imposed on the income made by the corporations.

8) Currency deposit ratio: The ratio of money held by the public in currency to that held as deposits in commercial banks.

9) Depreciation: A decrease in the price of the domestic currency in terms of the foreigh currency under floating exchange rate. It corresponds to an increase in the exchange rate.

10) Devaluation: The decrease in the price of domestic currency under pegged exchange rates through official action.