Important Banking terms
IMPORTANT BANKING TERMS
1. Balance of Trade :
The value of a country’s exports minus the value of its imports. Unless specified as the balance of merchandise trade, it normally incorporates trade in services, including earnings (interest, dividends, etc.) on financial assets.
2. Balance of Payments :
A list of all of a country’s international transactions for a given time period, usually one year. Payments into the country (receipts) are entered as positive numbers, called credits; Payments out of the country (payments) are entered as negative numbers called debits. A single numbers summarize all of a country’s international transactions: the balance of payments surplus.
3. MFN (Most Favoured Nation) :
The principle, fundamental to the GATT, of treating imports from a country on the same basis as that given to the most favoured other nation. That is, and with some exceptions, every country gets the lowest tariff that any country gets, and reductions in tariffs to one country are provided also to others.
4. Balanced Budget :
A government budget surplus that is zero, thus with net tax revenue equaling expenditure. A balanced budget changes in policy or behavior is one which a component of the government budget, usually taxes, is adjusted as necessary to maintain a balanced budget.
5. Balanced Growth of an Economy :
Growth of an economy in which all aspects of it, especially factors of production, grow at the same rate.
6. Bank Rate :
The interest rate charges by a central bank to commercial banks for very short term loans.
7. Repo Rate :
Whenever the banks have any shortage of funds they can borrow it form RBI. Repo rate is the rate at which commercial banks borrows rupees from RBI. A reduction in the repo rate will help banks to get money at cheaper rate. When the repo rate increases borrowing form RBI becomes more expensive.
8. Reverse Repo Rate :
Reverse Repo rate is the rate at which RBI borrows money from commercial banks. Banks
1. Balance of Trade :
The value of a country’s exports minus the value of its imports. Unless specified as the balance of merchandise trade, it normally incorporates trade in services, including earnings (interest, dividends, etc.) on financial assets.
2. Balance of Payments :
A list of all of a country’s international transactions for a given time period, usually one year. Payments into the country (receipts) are entered as positive numbers, called credits; Payments out of the country (payments) are entered as negative numbers called debits. A single numbers summarize all of a country’s international transactions: the balance of payments surplus.
3. MFN (Most Favoured Nation) :
The principle, fundamental to the GATT, of treating imports from a country on the same basis as that given to the most favoured other nation. That is, and with some exceptions, every country gets the lowest tariff that any country gets, and reductions in tariffs to one country are provided also to others.
4. Balanced Budget :
A government budget surplus that is zero, thus with net tax revenue equaling expenditure. A balanced budget changes in policy or behavior is one which a component of the government budget, usually taxes, is adjusted as necessary to maintain a balanced budget.
5. Balanced Growth of an Economy :
Growth of an economy in which all aspects of it, especially factors of production, grow at the same rate.
6. Bank Rate :
The interest rate charges by a central bank to commercial banks for very short term loans.
7. Repo Rate :
Whenever the banks have any shortage of funds they can borrow it form RBI. Repo rate is the rate at which commercial banks borrows rupees from RBI. A reduction in the repo rate will help banks to get money at cheaper rate. When the repo rate increases borrowing form RBI becomes more expensive.
8. Reverse Repo Rate :
Reverse Repo rate is the rate at which RBI borrows money from commercial banks. Banks