In economics, the term ‘deficit’ refers to a situation where expenditure exceeds revenue or income. In other words, a deficit occurs when an entity, such as a government, a company or an individual, spends more money than it earns or generates in revenue. A deficit indicates a financial shortfall, where there is a shortage of funds to cover all planned expenditures.
A Financial Instrument is a tool or asset used in financial markets for investment, trading, or funding activities, like stocks or bonds.
Purchasing power refers to the quantity and quality of goods and services that can be acquired with a given amount of money.
Bonds are debt securities issued by governments or institutions to raise funds for various financial purposes.
Default occurs when an entity fails to meet its debt obligations, potentially leading to bankruptcy or other financial repercussions.
The Consumer Price Index (CPI) is the principal measure used to track inflation, reflecting the average price change over time.
Capital refers to funds or assets for investment or economic activities crucial for business growth and development.
Capital gain is the profit earned from selling an asset at a higher price than its purchase cost, commonly realised in stock markets.
Commercial Banks cater to individuals and small businesses, offering deposit accounts, loans, and other traditional banking services.
The Central Bank sits atop the banking hierarchy, working with the government to regulate monetary policy and currency issuance.
Stocks are financial instruments representing ownership shares in a company, entitling holders to a portion of the corporate profits.
