Glossary - GLOSSARY Accommodating Items A term used in BOP...

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Accommodating Items A term used in BOP Accounts, that refer to transactions that occur because of other activity in the BOP, such as government financing. Accounting Period An accounting period or a financial year often does not coincide with a calendar year. Ordinarily, a financial year refers to, for example, April 1, 2003 to March 31, 2004 Actual Investment The actual amount of investment that took place, measured after the fact. Actual Savings The actual amount of savings that took place, measured after the fact. Adjustable Peg Adjustable peg system is one in which member countries fix or ‘peg’ their currencies’ rate of exchange against one particular currency. The fixed or ‘pegged’ exchange rate could be adjusted under certain conditions, hence the term adjustable peg. Administrative Revenue Revenue that arises on account of the administrative function of the government. Aggregate Demand The total demand for goods and services in the economy. Aggregate Supply Total supply of goods and services in the economy. Autonomous Items A term used in the BOP Accounts, that refer to international economic transactions that take place due to some economic motive such as profit maximization. Average Propensity to Consume At any particular level of income, the ratio of consumption to income is called the Average Propensity to Consume. (APC). The APC gives the average consumption — income relationship at different levels of income.
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I NTRODUCTORY M ACROECONOMICS 148 Average Propensity to Save At any particular level of income, the Average Propensity to Save (APS) is the ratio of savings to income. Balance of Payments The balance of payments of a country is a systematic record of all economic transactions between the residents of the reporting country and residents of foreign countries during a given period of time. Balance of Trade Those transactions that arise out of the exports and imports of goods. It does not consider the exchange of services rendered such as shipping, insurance and banking, payment of interest and dividend or expenditure by tourists Balanced Budget It is a budget where the estimated revenue equals the estimated expenditure. Bank Rate The bank rate is the rate at which the central bank lends funds as a ‘lender of last resort’ to banks, against approved securities or eligible bills of exchange. Barter Exchange The exchange of ‘goods for goods’ is called barter exchange. Base Year It is a reference year in the past, i.e. it is a year chosen to be the basis for comparison of the value of a particular variable with the value of that variable in another year. For example, if we are comparing the price level in 2003 with that in 2000, then 2000 is the base year. Bearer of Options Money is a bearer of options because it gives the freedom to its possessor to either hold it or to spend it on any commodity, which can be purchased from anyone.
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This note was uploaded on 04/20/2010 for the course CEDT 601 taught by Professor Ypr during the Spring '00 term at Indian Institute of Technology, Kharagpur.

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Glossary - GLOSSARY Accommodating Items A term used in BOP...

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