Laissez-faire : It is the other name of individualistic
theory which advocates private initiative in trade and
non-intervention by state in commercial or business enterprises.
Lead Bank : The Banking Commission has recommended that the
nationalised banks should be asked to take over the complete
development
activity of backward areas. Each bank was to be attached
with a certain
backward region of a district. It was to be the
responsibility of the bank to look after the development of
the backward region. The bank was to
undertake more or less a techno-economic survey in order to
take overall
the financial and developmental needs.
Legal Tender : Any form of money which is legal quittance of
a debt, and
which cannot be refused by the creditors.
Limited Company : A company in which the shareholder's responsibility
is limited to the extent of the value of the shares in it.
Lock-out : The factory is closed by employers to force the
employers to
accept the imposed terms.
Mixed economy : A mixed economy is one in which both public
and
private sectors have an important role to play, India has
opted for a mixed
economy with a provision that a few industrial fields of
vital national
importance have been reserved for the public sector.
Mutual Funds : There have been times when to purchase the
minimum
sized trading lot a good growth shares, one has to invest
more than Rs.
25,000. For a small saver, the only way to take advantages
of the prosperity
of such companies is by subscribing to a mutual fund. This
enables him to
subscribe to a diversified portfolio, not only offering him
the advantages of
growth in scripts that he would otherwise not have been
able to invest in
but also helping him to get a balanced portfolio which would
reduce his
exposure to risk. Despite floating of a large number of Mutual funds, the
public has got disillusioned due to very bad returns in
these funds. Unit Trust of India (UTI) is the leader in this financial
activity.
National Debt : The amounts borrowed at different times by
the
Government for the expenditure which cannot be met from
ordinary
revenues. The money so raised may be for productive purpose
or other
nation-building activities or for unproductive purpose, such
as war.
Open Credit : Credit given by a banker to a customer without guarantee
or security.
Overhead Cost : The cost over and above the fixed costs such
as
machinery, plants and land.
Paper Gold : Also known as Special Drawing Rights (S.D.R.)
allotted to
members of the International Monetary Fund, in proportion to
their quota
in the fund, so that the expanding world trade can be
financed changing
hands only on ledger sheets, but the members of the Fund
are obliged to
accept it as payment.
Patents : A patent is an exclusive right granted under the
Patents Act
to the inventor for anew and useful technical invention.
This is done with
a view to encouraging new inventions.
Public Company : A limited company whose capital consists of
shares
publicly subscribed.
Public Sector : A term which is generally applied to State
enterprises or
undertakings, i.e., those concerns or industries which are
nationalised and
run by the State.
Rebate : It is the refundable part of payment made, or
commission. say,
towards insurance policy or the like.
Reflation : A state of affairs when money market ist1ght;so
more money
is put into circulation by creating more jobs or by
providing cheap credit.
Royalty : It is a lump sum payment for certain kind
of ownership or privilege, e.g., royalty paid for
extracting oil from oilfields or mining coal from a
coal-mine, or a share of the sale price of book, paid by the
publisher to the author.
Security : Any article pledged to cover a loan and
the interest thereon, for the stipulated period.
SDR : It is a unit of an account (Special Drawing
Rights)–adopted by the International Monetary Fund. Its
value is determined by an average value of 14 basket
countries. Currently, the value of SDR is equal to U.S.A.
$1.17.
Sit-down Strike : A form of strike in which the
workers put down tools, but refuse to leave the premises of
the factory.
Soft Currency : It is the currency of the country in
relation to which we have a favourable balance of payment.
State Trading: When the state undertakes the purchase
and sale of certain commodities, so as to control market
prices, and to assure a fair deal, both to the product and
consumer. In India, State Trading Corporation was set up in
1956 to take over the sale and distribution of cement. The
S. T .C. now helps the economy in a number of ways by
increasing overseas trade.
Sterling : It is the paper currency of England,
i.e., one pound currency.
Tariff : It is protection for indigenous industry ,
or measures undertaken by any country to protect its own
industry against trade competition from outside.
