Monday, 18 March 2013

IMPORTANT ECONOMIC TERMS



IMPORTANT ECONOMIC TERMS
Accepting house : It is an institution specializing in accepting or guaranteeing bills of exchange.
Account  : It is a record for financial transaction in the form of stock or flows. It is also an arrangement between a seller and a buyer under which a period of credit is allowed before payment
Administered prices: They are prices set by the management decision rather than the negotiation between buyer and seller. The term administered price. Is often used to refer to price fixing by a monopoly firm. A cartel or government bodies some economist have argued that inflexible administered price have been an important contribution cause of inflation.
 Allotment-letter: it is a letter addressed to a subscribed to an issue of share informing him of the number of shares that he has been allotted and- where payment was not made with the application-the amount due.
Amortization  : It is the provision for the repayment of debit by means of accumulating a sinking fund through regular payment which with accumulated interest , may be used to settle the debit in installments over time or in a lump sum. The term is also used an a synonym for depreciation.
           

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