Ante date: To give a date prior to that on which it is written, to any cheque, bill or any other document.

Arbitration: A method for solving disputes, generally of an industrial nature, between the employer and his employees.

Amortization: Amortization is the repayment of Principal and Interest components of a Loan, over a period of time. Certain categories of expenses or charges are also amortized over a period of time.

Ad valorem tax: a tax based on the value of property.

Assets: Property of any kind.• Banker’s cheque: a cheque by one bank on another.

Balance of trade (or payment): The difference between the visible exports and visible imports of two countries in trade with each other is called balance of payment.

Basis Point: A unit of measurement which is equal to 1/100th of 1%. This is used to measure changes in interest rates, stock-market indices or yield on fixed income securities.

Balance Sheet: It is a statement of accounts, generally of a business concern, prepared at the end of a year.

Bank Rate: It is the rate of interest charged by the Reserve Bank of India for lending money to Commercial Banks.

Bear: A speculator in the stock market who believes that prices will go down.

Black Money: It means unaccounted money, concealed income and undisclosed wealth. The money which thus remains unaccounted for, is called the Black Money.

Bond: A legal agreement to pay a certain sum of money (called principal) at some future date and carrying a fixed rate of interest.

Bull: Speculators in the stock markets who buy goods, in some cases without money to pay with, anticipating that prices will go up.

Budget: An estimate of expected revenue and expenditure for a given period, usually a year, item by item.

Budget Deficit: When the expenditure of the government exceeds the revenue, the balance between the two is the budget deficit.

Cartel: It is a combination of business, generally in the same trade formed with a view to controlling prices and enjoy monopoly.

Call money: Loan made for a very short period. It carries a very low rate of interest.

Commercial Banks: Financial institutions that create credit, accept deposits, give loans and perform other financial functions.

Credit Appraisal: This is the process for evaluating credit worthiness of any loan proposal. This helps establish the risks involved in the proposal and debt servicing capacity of the borrower.

Custodial Account: An account created for the benefit of a minor with an adult as the custodian.

Deferred Payment: Payments put off to a future date or extended over a period of time. Interest will usually still accumulates during deferment.

Deflation: Deflation is a reduction in the level of national income and output, usually accompanied by a fall in the general price level.

Depreciation: Reduction in the value of fixed assets due to wear and tear.

Devaluation: Official reduction in the foreign value of domestic currency.It is done to encourage the country’s ex-ports and discourage imports.

Dividend: Earning of stock paid to shareholders.

Dumping: Sale of a commodity at different prices in different markets, lower price being charged in the market where demand is relatively elastic.

Double Taxation: Corporate earnings taxed at both the corporate level and again as a stock holder dividend.• Exchange Rate: The price of one currency stated in terms of another currency, when exchanged.

Excise Duty Tax: Imposed on the manufacture, sale and consumption of various commodities, such as taxes on textiles, cloth, liquor, etc.

Fiscal policy: Government’s expenditure and tax policy.

Free-trade Area: A form of economic integration in which there exists free internal trade among member countries but each member is free to levy different external tariffs against non-member nations.

Index of industrial Production: A quantity index that is designed to measure changes in the physical volume or production levels of industrial goods over time.

MICR Code: A unique 9-digit code as-signed to each Bank branch by Reserve Bank of India to facilitate sorting in clearing of instruments using the Magnetic Ink Character Recognition Technology.

Money Laundering: This means acquiring, owning, possessing or transferring any proceeds (or money) of crime or knowingly entering into any transaction related to proceeds of the crime either directly or indirectly.

Monopoly: Single seller selling single product.

Multi-Fiber Arrangement (MFA): A set of non-tariff bilateral quotas established by developed countries on imports of cotton, wool, and synthetic textiles and clothing from individual LDCs.

Non-performing Assets (NPA): Any loan account that has been classified by a bank or financial institution as sub-standard, doubtful or loss assets in terms of asset classification norms of RBI.

Payee(Drawee): The person who receives a payment. This often applies to cheque.

• Payer(Drawer): The person who makes a payment. This often applies to cheque.

Preference Shares: These are the shares entitled to a fixed dividend be-fore any distribution of profits can be made amongst the holders of ordinary shares.

Repo Rate: The rate at which banks borrow from RBI. It injects liquidity into the market.

Reverse Repo Rate: The rate at which RBI borrows from banks for a short-term. It withdraws liquidity into the market.

Statutory Liquidity Ratio (SLR): SLR is the portion that banks need to invest in the form of cash, gold or government approved securities.

Tariff (ad Valorem): A fixed percent-age tax on the value of an imported commodity, levied at the point of entry into the importing country.

VAT(Value Added Tax): A form of in-direct sales tax paid on products and services at each stage of production or distribution, based on the value added at that stage and included in the cost to the ultimate customer.

Zero Based Budgeting: The practice of justifying the utility in cost benefit terms of each government expenditure on projects.