terminologies

• Commodity currency
• Exorbitant privilege
• Floating currency
• Foreign exchange reserves
• Fiat currency
• Hard currency
• Krugerrand
• Seigniorage
• Special drawing rights
• Triffin dilemma
• World currency
• pump priming
• amortisation
• Debt Service Ratio : The Ratio of interest and principal payments on debt as a proportion of the countries total export for a particular year in called debt service ratio. DSR =Interest + Principal/Export.
• ICRA : Investment Information and Credit Rating Agents of India Limited. It was established in 1991. It primarily rates short, medium and long debt instruments. But, since 1995 it has been doing equity rating also.
• Black-Sholes Formula : It is a formula used to establish a fair price for options in financial markets.
• Blue Book : It is an annual digest published by the UK office of National Statistics containing the national income and expenditure statistics of the UK.
• Taylor Rule : A simple rule for setting interest rates with a view to keeping inflation stable.
• Tournament theory : The piece of economic thinking that suggests rewards can usefully be based upon the relative performance of economic agents, rather than on their absolute performance.
• Turnover Tax : A tax levied as a proportion of the price of a commodity on each sale in the production and distribution chain all so called as cascade tax. Such a tax encourages vertical integration.
• Greshem’s Law : It states that bad money (Black Money) pushes good money (White Money) out of circulation.
• Plan Holidays : It refers to a period which is not covered in any five year plan (period between 1966 to 69 between 3rd and 4th Five Year Plan).
• Golden Hand Shake : It is a voluntary retirement scheme (VRS) in Industrial Policy Resolution 1991. For reducing the pressure of employees on public sector enterprises.
• Free on Board : A term given to the system of paying for goods shipped from or to another country when the amount is sufficient only to cover the value of the goods and excludes insurance and freights.
• Washington Consensus : It is given by John Williamson in 1989. It gives a prescription on various measures on which developing countries have to take in order to grow in a faster way. The measure includes fiscal policy reform, monitory policy reforms.
• CAMELS : The CAMELS rating system is a recognized international rating system that bank supervisory authorities use in order to rate financial institutions according to six factors represented by the acronym "CAMELS” (Capital Adequacy, Asset Quality, Management, Earnings Liquidity and Systems). Supervisory authorities assign each bank a score on a scale, and a rating of one is considered the best and the rating of five is considered the worst for each factor.