Economy Terms Flashcards
1
Q
Swiss Challenge System (SCS)
A
A bidding process designed to enlist private sector initiatives in core sector projects.
2
Q
NIIF
A
A fund created by the Government of India for enhancing infrastructure financing in the country.
3
Q
Forward Contracts vs. Futures Contracts
A
Under the Forward Contracts Act (1952), forward contracts involve actual delivery of goods, while futures contracts can be cash.
4
Q
ICEGATE
A
The customs electronic repository of bills of entry, shipping bills, and other import-export documents.
5
Q
Nobel Prize in Economic Sciences (2015)
A
Awarded to Angus Deaton for his analysis of ‘consumption, poverty, and welfare.’
6
Q
Bulk Drugs/APIs
A
Active raw materials in drugs that provide therapeutic effects.
7
Q
Compulsory Licensing (CL)
A
Government-granted permission to use/manufacture patented inventions without the owner’s consent under WTO TRIPS Agreement conditions.
8
Q
Payment Banks
A
Non-full service banks aimed at accelerating financial inclusion.
9
Q
Cess
A
A tax on tax levied by the government for specific purposes.
10
Q
Market Economy Status (MES)
A
Exports are benchmarked against production costs and selling prices once a country gains MES.
11
Q
Base Erosion and Profit Shifting (BEPS)
A
Tax strategies exploiting gaps to shift profits to low/no-tax jurisdictions.
12
Q
Deflation
A
A decrease in the general price level of goods/services (negative inflation rate).
13
Q
Trade Credit Insurance
A
Insurance protecting accounts receivable from credit risks like default or bankruptcy.
14
Q
Transfer Pricing
A
Prices set for internal transactions between company divisions.
15
Q
AIF (Alternative Investment Fund)
A
Non-traditional investments like hedge funds, private equity, etc.
16
Q
IIP (Index of Industrial Production)
A
Measures industrial sector growth over time compared to a base year.
17
Q
Seed Funding
A
Initial capital to develop a business idea and launch a product.
18
Q
Social Progress Index
A
Measures social progress across Basic Human Needs, Wellbeing, and Opportunity.
19
Q
Tax Justice Network
A
Advocacy group focused on international tax and financial regulation.
20
Q
Blue Revolution
A
Sustainable development and management of fisheries.
21
Q
Kuznets Curve
A
Hypothesis that economic inequality first rises then falls as an economy develops.
22
Q
GDP (Gross Domestic Product)
A
Monetary value of all final goods/services produced in a country.
23
Q
Gini Coefficient
A
Measures income inequality among citizens.
24
Q
Chit Funds
A
Savings instruments with periodic subscriptions from members.
25
BASEL III
International banking regulatory accord for risk management.
26
Small Finance Banks (SFBs)
Niche banks serving MSMEs and underbanked regions.
27
Twin-balance Sheet Problem
Corporate and bank balance sheet issues due to delayed projects.
28
NPAs vs. Stressed Assets
Stressed assets include NPAs, restructured loans, and written-off assets. NPAs are loans overdue by 90+ days.
29
EPFO
Statutory body managing employee provident funds.
30
Monetary Policy Committee (MPC)
6-member committee (3 RBI, 3 government) deciding policy rates.
31
Peer-to-Peer Lending (P2P)
Direct lending between individuals without financial intermediaries.
32
FCNR Account
Foreign currency term deposit accounts for NRIs/PIOs.
33
NPCI
Non-profit organization managing payment systems (e.g., UPI, RuPay).
34
Venture Capitalists
Investors funding high-growth startups for equity stakes.
35
SEBI
Regulator of securities markets in India.
36
Algorithmic Trading
Automated trading using pre-set computer programs.
37
Sovereign Gold Bonds (SGBs)
Government securities denominated in gold, redeemable in cash.
38
Climate Bonds Initiative
Non-profit promoting green bond investments.
39
Green Bond
Debt instrument funding environmentally friendly projects.
40
Global Environment Facility (GEF)
Financial mechanism for environmental conventions like UNFCCC.
41
Green Climate Fund
UNFCCC fund supporting climate action in developing countries.
42
Clean Development Mechanism (CDM)
Developed countries invest in emission reduction projects in developing nations.
43
Masala Bonds
Rupee-denominated bonds issued overseas by Indian entities.
44
NBFCs
Financial institutions offering limited banking services (no demand deposits).
45
Ponzi Scheme
Illegal scam paying returns via new investors, not profits.
46
Plan Expenditure
Spending on Five-Year Plan programs.
47
Non-Plan Expenditure
Routine government operational expenses.
48
Gender Responsive Budgeting
Budget analysis to ensure gender commitments are funded.
49
PFMS
Public Financial Management System. Payment tracking and monitoring system for government schemes.
50
Public Debt Management Agency (PDMA)
Proposed agency managing government debt.
51
PFRDA
Regulator for pension funds in India.
52
BCTT (Banking Cash Transaction Tax)
Tax on large cash transactions (abolished in 2009).
53
CBDT
Governing body for direct taxes in India.
54
POEM (Place of Effective Management)
Location where key management decisions are made.
55
Advance Pricing Agreements (APAs)
Pre-defined pricing methods for related-party transactions.
56
Tax-to-GDP Ratio
Ratio of total taxes collected to GDP.
57
Tax Terrorism
Aggressive tax practices like retrospective taxation.
58
Current Account Deficit
Imports exceed exports in value.
59
ATM Types
Bank ATM, Brown Label ATM, White Label ATM.
60
Countervailing Duty (CVD)
Duty offsetting subsidies in exporting countries.
61
Safeguard Duty
Temporary duty to protect domestic industries from import surges.
62
External Commercial Borrowings (ECBs)
Foreign loans for commercial activities in India.
63
Offshore Derivative Instruments (ODIs)
Instruments for foreign investors to gain exposure to Indian equities.
64
Double Taxation Avoidance Agreement (DTAA)
Treaty preventing double taxation across countries.
65
Trade Receivables
Unpaid customer invoices for goods/services.
66
MSP (Minimum Support Price)
Government procurement price for crops.
67
Spot Market vs. Derivatives Market
Spot markets trade immediate contracts; derivatives trade futures/options.
68
IPR (Intellectual Property Rights)
Rights protecting creators' works.
69
Vulnerable Employment
Own-account workers and unpaid family workers (ILO definition).
70
Logistics Performance Index (LPI)
World Bank
Measures efficiency of product movement across countries.
71
Geographical Indication (GI)
Sign certifying a product’s origin-linked qualities.
72
Contract Theory
Study of incentive design in formal/informal contracts.
73
Prompt Corrective Action (PCA)
RBI framework to monitor underperforming banks.
74
Special Mention Accounts (SMAs)
Early warning for potential NPAs.
75
Sub-standard/Doubtful/Loss Assets
NPA classifications based on overdue duration.
76
Letter of Undertaking (LOU)
Bank guarantee for short-term foreign credit.
77
Core Banking Solution (CBS)
Back-end system for banking transactions.
78
LIBOR
Global benchmark for interbank lending rates.
79
Base Rate
Minimum lending rate set by banks.
80
PSLCs (Priority Sector Lending Certificates)
Tradable certificates for priority sector lending targets.
81
MTDS (Medium-Term Debt Management Strategy)
Framework for sustainable government borrowing.
82
Angel Investors
Investors providing capital to early-stage startups.
83
Teaser Loans
Low initial-rate loans later adjusted to higher rates.
84
Special Drawing Rights (SDRs)
IMF-created international reserve asset.
85
Tax Havens
Jurisdictions with low/no taxes and financial secrecy.
86
Dumping
Exporting goods below home market price to distort trade.
87
CRR (Cash Reserve Ratio)
RBI-mandated reserve banks must maintain.
88
Repo Rate
Rate at which RBI lends to banks.
89
Reverse Repo Rate
Rate at which RBI borrows from banks.
90
Bail-In Clause
Debt restructuring without public funds.
91
Bridge Institution
Entity resolving failing financial institutions.
92
Run-off Entity
Insurance entity winding down operations.
93
Contingency Fund
RBI reserve for economic crises.
94
Differentiated Banks
Niche banks with specialized operations.
95
DSIBs (Domestic Systemically Important Banks)
Banks deemed 'too big to fail.'
96
Public Credit Registry
Central database for credit information.
97
Priority Sector
Sectors requiring government-mandated credit.
98
Merchant Discount Rate (MDR)
Fee paid by merchants for card payments.
99
Bond
Debt instrument with fixed/variable interest.
100
ETF (Exchange Traded Fund)
Index-traded fund combining stock liquidity and fund security.
101
Dormant Company
Inactive company with no filings for 2+ years.
102
Shell Companies
Entities with no active business (legitimate/illegitimate).
103
Fiscal Deficit
Total expenditure minus (revenue + non-debt receipts).
104
Disinvestment
Government sale of stakes in PSUs.
105
Reverse Charge Mechanism
Tax liability on recipient (not supplier).
106
Profiteering
Unfair profits via price manipulation.
107
E-way Bill
Document for goods transport over ₹50k under GST.
108
Capital Gains Tax
Tax on profits from asset sales.
109
Green/Amber/Blue Box Subsidies
WTO classifications for trade-distorting subsidies.
110
IIAs (International Investment Agreements)
Treaties promoting/protecting cross-border investments.
111
Living Wage vs. Fair Wage
Living wage covers basic needs; fair wage is need-based.
112
Structural/Frictional/Cyclical Unemployment
Unemployment types based on economic shifts.
113
FPCs (Farmer Producer Companies)
Hybrid entities combining co-op and corporate features.
114
NABARD
Apex development bank for rural credit.
115
Seed Replacement Ratio (SRR)
Certified seeds vs. farm-saved seeds usage.
116
Land Bank
Government-held land for investor allocation.
117
PPP Models (BOT, EPC, HAM)
Public-private partnership frameworks.
118
InvITs (Infrastructure Investment Trusts)
Trusts pooling funds for infrastructure projects.
119
Sovereign Wealth Fund
State-owned investment fund from reserves.
120
REITs (Real Estate Investment Trusts)
Entities owning/managing income-generating real estate.
121
Eco-mark
Eco-label for environmentally friendly products.
122
Operational/Financial Creditors
Creditors based on service vs. loan relationships.
123
Amalgamation vs. Merger
Combining entities into new/existing structures.
124
Urban Cooperative Banks (UCBs)
Co-op banks serving urban areas.
125
Tier-1/Tier-2 Capital
Bank capital classifications for risk absorption.
126
Capital Conservation Buffer (CCB)
Extra capital above regulatory minimum.
127
Pro-cyclical/Counter-cyclical Lending
Lending aligned/opposed to economic cycles.
128
CAR (Capital Adequacy Ratio)
Bank capital as % of risk-weighted assets.
129
Shadow Banking
Non-bank financial intermediaries.
130
Treasury Bills
Short-term government debt instruments.
131
Financial Instruments
Assets like cash, bonds, shares, derivatives.
132
Withholding Tax
Tax on non-resident income from securities.
133
Insider Trading
Trading using non-public material information.
134
Debentures
Unsecured bonds backed by issuer’s creditworthiness.
135
GDP vs. GVA
GDP measures total output; GVA is sector-specific value addition.
136
Government Debt
Liabilities under Consolidated Fund and Public Account.
137
Roll-over Risk
Refinancing risk for maturing debt.
138
Direct/Indirect Taxes
Taxes paid directly (income tax) vs. indirectly (GST).
139
Angel Tax
30% tax on startups’ excess share valuation.
140
Anti-Dumping/Countervailing/Safeguard Duties
Trade protection measures.
141
Recapitalization Bonds
Government bonds to recapitalize banks.
142
Fixed-Term Employment
Temporary contracts with statutory benefits.
143
Inverted Duty Structure (IDS)
Lower import duty on finished goods vs. raw materials.
144
Public Utility Service
Essential services (e.g., electricity, water).
145
Cabotage
Shipping restrictions within a country’s ports.
146
Freight Village
Logistics hub for transport and distribution.
147
Stagflation
Stagnant growth + high inflation + unemployment.
148
Corporate Tax Rate Cut
Reduced tax rates for domestic/foreign firms.
149
Buyback Tax
Tax on share repurchases by companies.
150
Interest Rate Spread
Difference between lending and borrowing rates.
151
MCLR (Marginal Cost Lending Rate)
RBI-mandated minimum lending rate.
152
NPA Divergence
Difference between RBI and bank NPA assessments.
153
Bond Yield
Return on bond investments (inverse to price).
154
Yield Curve
Graph of bond yields across maturities.
155
Predatory Pricing
Pricing below cost to eliminate competition.
156
Non-Tariff Measures (NTMs)
Trade policies beyond tariffs (e.g., quotas, standards).
157
S&DT (Special and Differential Treatment)
WTO provisions favoring developing countries.
158
TIEA (Tax Information Exchange Agreement)
Cross-border tax data sharing.
159
INSTEX
EU mechanism for Iran trade despite US sanctions.
160
Labour Metrics (LFPR, WPR, UR)
Employment/unemployment indicators.
161
NWR (Negotiable Warehouse Receipts)
Warehouse receipts used for loans.
162
FRP vs. SAP
Cane pricing by central vs. state governments.
163
Elephant Bonds
25-year bonds for undisclosed income declaration.
164
TreDS (Trade Receivables Discounting System)
Platform for MSMEs to sell receivables.
165
ITBs (Intermediate Treasury Bills)
14-day bills for state government surpluses.
166
Debt-to-GDP Ratio
Debt as % of GDP indicating repayment capacity.
167
Short-term Debt
Debt maturing within 12 months.
168
GFD (Gross Fiscal Deficit)
Excess of expenditure over receipts.
169
Floating Rate Bonds (FRBs)
Bonds with variable interest rates.
170
IP-RR Ratio
Interest payments vs. revenue receipts.
171
Currency Risk
Debt vulnerability to exchange rate changes.
172
TSA (Treasury Single Account)
Unified government cash management.
173
Fiscal Stimulus
Policy-driven deficit increase to boost growth.
174
PDRD Grants
Post-devolution revenue deficit compensation.
175
Security Interest/Security Receipt
Collateral claims for loans.
176
SMA Classification
Overdue loan categorization.
177
Money Supply Measures (M0-M4)
Monetary aggregates from base to broad money.
178
MFIs (Micro-Finance Institutions)
Entities providing financial services to low-income groups.
179
VRR (Voluntary Retention Route)
FPI investment window with easier rules.
180
Liquidity Trap
Low rates + high savings = ineffective monetary policy.
181
CIC (Core Investment Companies)
NBFCs investing in shares/securities.
182
Derivatives/QFCs
Contracts derived from underlying assets.
183
Municipal Bonds
Debt for civic projects (general/revenue bonds).
184
Surety/Consol/Negative Yield Bonds
Specialized debt instruments.
185
Bharat Bond ETF
ETF investing in AAA-rated PSU bonds.
186
QIPs (Qualified Institutional Placements)
Listed companies’ equity/debt issuance.
187
DSIIS (Domestic Systemically Important Insurers)
Insurers critical to financial stability.
188
Certificate of Origin (CO)
Document certifying product origin.
189
TDR (Transferable Development Rights)
Land acquisition mechanism for infrastructure.
190
RPO (Renewable Purchase Obligation)
Mandated renewable energy procurement.
191
Forward Market
OTC market for future asset delivery.
192
PPP (Purchasing Power Parity)
Currency conversion rate for equal goods value.
193
G-Sec/Gilt Accounts
Government securities and holding accounts.
194
Retrospective Taxation
Backward-looking tax adjustments.
195
D-SIBs
Banks deemed 'too big to fail' by RBI.
196
PCR (Provisioning Coverage Ratio)
Provisions as % of gross NPAs.
197
Card Tokenization
Replacing card details with tokens.
198
Sweat Equity
Shares issued for non-cash contributions.
199
Floating Rate Funds
Funds investing in variable-rate bonds.
200
Escrow Account
Third-party-held funds during transactions.
201
Early Harvest Scheme
Pre-FTA tariff liberalization pact.
