There are a number of economic terms, which you come across in your day to day life but you do not know their meaning. In some cases you have a vague idea about the meaning of the term but you do not know its exact meaning. In such cases you cannot fully appreciate the text or the context in which that particular term is used and you feel a little left out.
This encyclopedia covers all the important economic terms that are
generally used and explains them in simple and lucid manner. The terms
have been explained keepng in mind that the reader is a layman and not
an economist. The list of terms given in the encyclopedia is not
exhaustive and will be updated from time to time.
CRISIL is acronym for Credit Rating Information Services of India
Limited. CRISIL is India's leading Ratings, Financial News, Risk and
Policy Advisory company.
Fringe Benefit Tax (FBT) is a tax levied on perquisites-or fringe
benefits -provided by an employer to his employees, in addition to the
cash salary or wages paid.
and Services Tax
Goods and Services Tax (GST) is a part of the proposed tax reforms that
center round evolving an efficient and harmonized consumption tax system
in the country.
Liquid funds are used primarily as an alternative to short-term fix
deposits. Liquid funds invest with minimal risk (like money market
Service Tax is a form of indirect tax imposed on specified services
called "taxable services". Service tax cannot be levied on any
service which is not included in the list of taxable services.
Standard & Poor's (S&P) is one of the world's preeminent
providers of credit ratings, indices, risk evaluation, investment
research and data.
VAT or Value Added Tax is a consumption tax which is levied at each
stage of production based on the value added to the product at that
Derivatives are contracts that are based on or derived from some
underlying asset, reference rate, or index. The underlying asset can be
securities, commodities, bullion, currency, livestock or anything else.
Futures trading is an agreement between a buyer and a seller obligating
the seller to deliver a specified asset of specified quality and
quantity to the buyer on a specified date at a specified place and the
The term hedge fund is used to indicate a 'hedge' against investment
deterioration. Hedge fund can be defined as a managed portfolio that has
targeted a specific return goal regardless of market conditions.
Multi Commodity Exchange is a commodity exchange based in Mumbai, the
financial capital of India. The MCX is a demutualized electronic multi
commodity futures exchange