Indian Economy

From today we will going to start Indian Economy, all basic concept related to exams covered under this series. Today we start with daily 10 glossary of Economy.

1) Adam Smith : (1723-1790) The father of modern economics. Auther of Wealth of nations.

2) Aggregate monetary resources: Broad money without time deposits of post office savings organisation.

3) Automatic stabilisers: Under certain spending and tax rules, expenditures that automatically increase  or taxes that automatically decrease when economic conditions worsen, therefore stabilising the economy automatically.

4) Balance of payments: A set of accounts that summarise a country's transactions with the rest of the world.

5) Balanced budget: A budget in which taxes are equal to government spending.

6) Bank rate: The rate of interest payable by commercial banks to RBI if they borrow money from the latter in case of a shortage of reserves.

7) Barter exchange: Exchange of commodities without the mediation of money.

8) Base year: The year whose prices are used to calculate the real GDP

9) Bonds: A paper bearing the promise of a stream of future monetary returns over a specified period of time. Issued by firms or governments for borrowing money from the public.

10) Capital: Factor of production which has itself been produced and which is not generally entirely consumed in the production process.