Wednesday, 16 October 2013

SOME IMPORTANT FINANCIAL TERMS


   Relative Strength Index

It is a technical tool or a continuous indicator that  compares the strength of recent gains
to recent losses in an attempt to determine overbought and oversold condition of asset
s.




Contingency fund


Somewtime it happens that some unforeseen expenditures comes out even after the announcement of budget.Contingency fund is kept to met those unforeseen expenditures. After the money withdrawn from contingency fund, the consolidated fund of government is used to credit back the contingency fund.




                                                                Gross Income


            A person's total income before applying taxation and other deductions on it.





                                                                Net Income

                       An individual's income after payment of taxes and other deductions.





                                                   Gross Domestic Product

GDP is the market value of all the products a and services produced in a country officially in a given time period






                                                     Net Domestic Product



The value of all goods and services is consumed over a year which results in depreciation, hence net domestic product is calculated as

  Net Domestic Product  = Gross Domestic Product - depreciation of goods and services







                                     Representation Money


Representation Money is any kind of token coins or any physical coins which is safely exchanged for fixed quantity of commodities like silver or gold.




                                           

                                                          Mail Transfer Order


A mail transfer order is only an authority by remitting branch to the another branch for credit of amount to other account for payment  to the customer






















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