Business/Economy-Important One Liners For Exam

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Business/Economy

1- FDI stands for Foreign Direct Investment

2-Inflation is a general increase in prices and fall in the purchasing value of money.

3- Deflation is a reduction of the general level of prices in an economy.

4- SEZ stand for Special Economic Zone

5- Marginal Standing Facility Rate is the rate at which banks can borrow overnight from RBI.

6-SEBI is a Statutory body

7-Cash reserve Ratio is the amount of cash funds that the banks have to maintain with RBI.

8-Reserve Bank of India was nationalized in 1949.

9-SLR (Statutory Liquidity Ratio) is the amount a commercial bank needs to maintain in the form of cash, or gold or government approved securities (Bonds) before providing credit to its customers.

10- Repo Rate is the rate of interest which is levied on Short-Term loans taken by commercial banks from RBI.

11-Those amounts due to vendors or suppliers that must be paid within one year is known as Accounts Payable

12-Short-term assets, representing amounts due to a vendor or suppliers of goods or services that were sold on credit terms is known as Account Receivable

13-Reverse Repo Rate is the rate at which commercial banks charge on their surplus funds with RBI.

14- Bank Rate is the rate of interest which is levied on Longt-Term loans and Avances taken by commercial banks from RBI.

15-FII stands for Foreign Institutional Investor

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