MONETARY POLICY

The statutory liquidity ratio (SLR) is a measure of the liquidity of a bank, which is the ability of a bank to meet its current liabilities in full. Definition:The statutory liquidity ratio (SLR) is a required ratio of deposits to liquid assets that banks must maintain in order to ensure depositors’ funds are available in […]

The term “privatisation” is a complex one with different meanings depending on the context. Generally, it refers to the process of converting a public asset or service into a private company. There are different types of privatization, including: Complete privatization: In this case, the entire asset or service is sold to a private company. Partial […]

Definition: Adjustment is the process of making changes to a variable or a set of variables to bring them into alignment with a desired standard or value. It is commonly used in various fields, including statistics, engineering, and science. Types of Adjustments: Linear adjustment: Involves making linear changes to the variable or variables to adjust […]

The annual percentage rate (APR) is a standardized way to express the cost of borrowing money. It is the rate that includes all interest charges, fees, and other costs associated with borrowing money, as a yearly percentage. Formula for APR: APR = (1 + interest rate/n)^(n * years) – 1 where: APR is the annual […]

Definition: A revenue deficit occurs when the total revenue of a government agency is less than its total expenditures. It means that the agency is spending more money than it is taking in. Causes: Increased expenditures: High spending on programs, infrastructure, or debt servicing. Decreased revenue: Lower tax rates, reduced fees, or declining sales. Economic […]

Foreign Exchange Reserves (FX Reserves) Foreign exchange reserves (FX reserves) are the foreign currency assets held by a central bank as part of its foreign exchange reserves. These assets are used to influence exchange rates, maintain price stability, and provide foreign exchange liquidity. Components of FX Reserves: Foreign Currency Deposits: Deposits in foreign banks or […]

GDP per Capita GDP per capita is a measure of a country’s wealth or economic well-being, measured by the total value of goods and services produced within a country in a particular year, divided by its total population. It is a commonly used metric to compare the wealth of different countries. Formula: GDP per Capita […]

Cost of Goods Sold (COGS) is a measure of the cost of raw materials and finished goods that are used in the production and sale of goods. It includes the cost of materials, labor, and factory overhead. Formula: Cost of Goods Sold = Beginning Inventory + Purchases – Ending Inventory Components of Cost of Goods […]

Lorentz Curve: The Lorentz curve is a graphical representation that describes the relationship between the magnetic field strength (B) and the magnetic field angle (θ) for a given material. It is named after the Dutch physicist Pieter Zeeman, who first discovered the phenomenon in 1896. Key Features of the Lorentz Curve: Parametric: The Lorentz curve […]