Indian Economic And Social Development – Key Terms And Their Meanings Part II

Key Terms And Their Meanings Part II

  • Closed Shop: A workplace in which all employees must belong to a trade.
  • Collateral Security: A security for a loan held by banks that can be liquidated in the event of a borrower being unable to repay the loan.
  • Company: A legal organisation formed by two or more individuals. In law, a company is considered as an entity separate from its owners or members.
  • Conspicuous Consumption: Consumption in which the consumer derives satisfaction from the fact of other people seeing that he/she is consuming a particular good or service. It tends to occur with expensive luxurious goods, which the majority of consumers would not be able to afford.
  • Convertibility: The extent to which one form of currency or security can be exchanged for another.
  • Cooperative: An organisation in which individuals group together to be more effective in either production or distribution. For example, several small farmers might form a cooperative for the purchase of expensive items of machinery, which none could afford to buy on their own.
  • Cost_Benefit Analysis: A method of investment appraisal that attempts to take into account the cost and benefits of the project to society as a whole (in addition to the private costs and revenue involved).
  • Council for Mutual Economic AID: (COMMON, CMEA) An association of the governments of 10 communist countries, namely the USSR, Mongolia. Cuba, Bulgaria, Czechoslovakia, Rumania, and Albania (although Albania no longer participates).
  • Crawling Peg: A system of exchange rate adjustment in which regular but small changes are made to correct for overvaluation or undervaluation of a currency.
  • Credit Squeeze: A government policy intended to reduce aggregate. demand. by limiting me amount of credit that banks and finance houses could make. available to their customers.
  • Cross-Subsidy: A subsidy that occurs when a loss is made on the sale of one by additional profits earned on the sale of another good sold by the same producer.
  • Customs and Excise: A department of the Inland Revenue responsible for administrating and collecting quality imposed on goods imported from abroad (customs duties) and duty imposed on goods and services produced in the UK (excise duties). 1922.
  • Deficit Financing :
  • The policy of creating or increasing a deficit in the balance between our government’s expenditure and revenue. Deficit financing was popularized (but not invented) by Keynes and is usually undertaken to stimulate economic activity:
  • Deflation: A fall in the general level of prices. More generally, it refers to economic policies that are intended to reduce prices., wages, or imports, and that commonly result in reducing national. income and employment. It is usually induced by increasing interest rates and taxes and by reducing government expenditure.
  • Demand: The quantity of a good or service consumers are able and willing to buy at a given price in a given market during a specified time period, other things being equal. Depression : (slump) A period of time during which economic activity is so low for such a long period of time that large numbers of people are permanently unemployed. It is distinguished from a recession when unemployment is temporary.
  • Devaluation: Loss of value of a currency relative to other foreign currencies, usually because of the persistent balance of payments deficits.
  • Dumping: The practice of selling goods abroad at a loss. It is done either to off-load excess stocks without damaging the home market or to drive competitors out of business.
  • Easy Money : (cheap money) Money that can be borrowed at low rates of interest. This happens when a large proportion of banks’ assets are very liquid and there are no restrictions on credit creation by banks or lending by other financial institutions.
  • Economic and Monetary Union: The aim adopted at -The Hague Summit of 1969 was to develop the European Economic Community into a full economic and monetary union. Little success has so far been achieved in creating EMU. apart from the European Monetary System. which came into operation in 1979. See European Economic Community, European Monetary System.
  • Embargo: An embargo may be used as a reprisal or as a political tool in negotiations, as attempting to force an end to hostilities.
  • Entrepreneur: A person who sets up commercial companies, provides the capital. runs the business, and takes the risk.
  • Eurocurrency: Money that is held outside the country of its issue, e.g. US dollars held in Europe. Deutschmarks held outside West Germany, and pounds sterling held abroad.

Here are the notes for Key Terms And Their Meanings Part III.

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