“The Knowledge Library”

Knowledge for All, without Barriers…

An Initiative by: Kausik Chakraborty.

“The Knowledge Library”

Knowledge for All, without Barriers……….
An Initiative by: Kausik Chakraborty.

The Knowledge Library

Important Indian Economy Terms

▪️NPA : A non performing asset (NPA) is a loan or advance for which the principal or interest payment remained overdue for a period of 90 days.

▪️Substandard Assets : Assets which has remained NPA for a period less than or equal to 12 months.

▪️Doubtful Assets : An asset would be classified as doubtful if it has remained in the substandard category for a period of 12 months.

▪️Loss Asset : As per RBI, “Loss asset is considered uncollectible and of such little value that its continuance as a bankable asset is not warranted, although there may be some salvage or recovery value.

▪️Seigniorage : is the difference between the value of currency/money and the cost of producing it. It is essentially the profit earned by the government by printing currency.

▪️Core Inflation : An inflation measure which excludes transitory or temporary price volatility as in the case of some commodities such as food items, energy products etc. It reflects the inflation trend in an economy.

▪️Stagflation : is the extreme economic situation, a peculiar combination of stagnant growth and rising inflation leading to high unemployment

▪️Lorenz Curve : A Lorenz curve is a graphical representation of income inequality or wealth inequality

▪️KUZNETS CURVE : It shows the relationship between economic  growth  and inequality. It is inverted U shaped meaning that as initially economic growth leads to greater inequality, followed later by the reduction of inequality.

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