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.

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.

Bills of Exchange
A document acknowledging an amount of money owed in consideration for goods received.

Budget
The budget is an annual statement of the estimated receipts and expenditures of the government over the fiscal year, which runs from April 1 to March 31.

Budget Deficit
The budget deficit is the difference between the total expenditure on one hand, and current revenue and net internal and external capital receipts of the government. It has to be financed by net internal and external capital receipts.

C-C Economy
An economy in which commodities are exchanged for commodities.

Capital Budget
A statement of the estimated capital receipts and payments of the government over the fiscal year, which runs from April 1 to March 31.

Capital Consumption
Monetary value assigned to the rate of

Allowance
depreciation of a physical asset in one year.

Capital Expenditure
Consists mainly of expenditure on acquisition of assets like land, buildings, machinery, equipment; investments in shares, etc. and loans and advances granted by the central government to state and union territory governments, government companies, corporations and other parties.

Capital Receipts
Items included in capital receipts are loans raised by the government from the public (these are called Market Loans), borrowings by the government from the Reserve Bank of India and other parties through the sale of treasury bills, loans received from foreign governments and other international bodies (For example,
World Bank, Asian Development Bank, etc.), recoveries of loans granted to state and union territory governments and other parties, small savings and deposits in the public provident fund (PPF), etc.

Cash Credit
Credit which is advanced against the value of the borrower’s current assets, which comprise mainly stocks of goods — raw materials, semi-manufactured or finished goods, and bills receivable (dues) from others.

For more please download below document.

glossary.pdf