Important Terms 2- For competitive exams

This page include a glossary of Important terms which are being discussed and asked in competitive exams.

Credit-Worthiness: This is the judgement of an organization which is assessing whether or not to take a particular individual on as a customer. An individual might be considered credit-worthy by one organization but not by another. Much depends on whether an organization is involved with high risk customers or not.
Time Deposit: Time deposit is a money deposit at a banking institution that cannot be withdrawn for a certain “term” or period of time. When the term is over it can be withdrawn or it can be held for another term.

FCNR Accounts: Foreign Currency Non-Resident accounts are the ones that are maintained by the NRIs in foreign currencies like USD, DM, and GBP etc. The account is a term deposit with interest rates linked to the international rates of interest of the respective currencies.
Demand Deposit: A Demand deposit is the one which can be withdrawn at any time, without any notice or penalty; e.g. money deposited in a checking account or savings account in a bank.
Tier 2 capital: Tier 2 capitals, or supplementary capital, include a number of important and legitimate constituents of a bank’s capital base. Things which include in tier 2 capital
• Undisclosed reserves and cumulative perpetual preference shares.
• Revaluation Reserves General Provisions and loss reserves
• Hybrid debt capital instruments such as bonds.
• Long term unsecured loans Debt Capital Instruments.
• Redeemable cumulative Preference shares
• Perpetual cumulative preference shares.
Blue Collar Jobs :- These Jobs are concerned with factory. Persons who are unskilled and depend upon manual jobs that require physical strain on human muscle are said to be engaged in Blue Collar Jobs. In the age of machinery, such Jobs are on the decline these days.

Black Money :- It is unaccounted money which is concealed from tax authorities. All illegal economic activities are dealt with this black Money. Hawala market has deep roots with this black money. Black money creates parallel economy. It puts an adverse pressure on equitable distribution of wealth and income in the economy.
Bilateralism :- It implies an agreement between two countries to extend to each other specific privileges in their international trade which are not extended to others.

Balance Sheet :- Balance sheet is a statement showing the assets and liabilities of a business at a certain date. Balance sheet helps in estimating the real financial situation of a firm.
Balance of Trade :- Balance of trade refers to the total value of a country’s export commodities and total value of imports commodities. Thus balance of trade includes only visible trade i.e., movement of goods (exports and imports of goods). Balance of trade is a part of Balance of payment statement.