Finance

In almost all companies, the finance department has two most important jobs:  to record and report all financial transactions of the company, and manage the company's financial resources. Recording and reporting of financial transactions in a company's books of account is referred to as accounting, managed by the accounts department.  Effective … [Read more...] about How the finance department helps businesses to grow

Shrinkflation is a process of items shrinking in size or quantity, or even sometimes reformulating, while their prices of the product remain the same or slightly increase. It is a tactic used as an alternative to raising prices in line with market inflation.  Shrinkflation is also known as package downsizing. This means your everyday products shrink in size and quantity with … [Read more...] about Shrinkflation: What is it and why is it used by producers

Government releases data related to consumer price index (CPI) and wholesale price index (WPI) of the country. WPI and CPI are the most commonly used measures to determine inflation. Inflation is a rate at which prices of goods and services are rising in an economy. Inflation is always expressed as a percentage. The main purpose of calculating CPI and WPI is to measure … [Read more...] about What are CPI and WPI inflation rates in economics

Trade deficit of a country means its import for a period exceeds its export. This means a trade deficit occurs when there is a negative balance in an international transaction. In other words, a country has spent more money than it has made in international trade with the rest of the world. Net balance determines the exposure of an economy to the rest of the world.  … [Read more...] about What is Trade deficit and how it impacts the economy

The most basic function of a bank is to take deposits and lend money. In order to make profit banks usually charge higher interest while lending money and pay less interest on deposits. The difference between the interest earned from loan and interest on deposits is called net interest income or bank’s core business income. In this article, you will learn what is the net … [Read more...] about Why Net interest margin (NIM) is important to banks

A country’s economic objective is met by two types of policy: fiscal policy and monetary policy. Monetary policy is enacted by the country’s central bank. Fiscal policy is used by the government. A country’s monetary policy deals with money, currency and interest rates. In India, monetary policy is set by the Reserve Bank Of India (RBI), being the central bank of … [Read more...] about What is Monetary policy and how does it works

A country’s fiscal policy along with the monetary policy plays a crucial role in managing the growth in the economy. The main purpose of both fiscal and monetary policy is to achieve full employment, maintain or achieve high economic growth and to stabilise the price and wages. Fiscal policy refers to the use of the Government spending and tax policies to influence the … [Read more...] about Fiscal Policy: What is the purpose and its effect

Stagflation is derived from two words stagnation and inflation. It's an economic term used to describe a condition that describes slow growth, high unemployment and rise in prices of goods and services. In other words, stagflation is a combination of three negatives: slower economic growth, higher unemployment and high inflation. Inflation refers to a sustained increase … [Read more...] about What is Stagflation and when it’s triggered

In economics, deflation occurs when there is a general decline in prices for goods and services across all segments of the industry. As prices decline, the purchasing power of money rises over time. Deflation benefits the end consumer as their purchasing power increases. They can buy more goods and services due to lower prices with the same income over time. Purchasing … [Read more...] about Deflation: Definition, Causes and is it good or bad for us

Inflation is one of the most familiar words in economics. It's often used to describe the impact of rising oil or food prices on the economy.  For example, if oil prices go up by $25 per barrel, then input cost of business and transportation costs will increase. In response, the cost of many other products and services will rise. Inflation may plunge countries into a … [Read more...] about Inflation: How It’s Measured and Managed