GK with special reference to banking & finance-1

Terms:


1. Leverage Ratio:

Any ratio used to calculate the financial leverage of a company to get an idea of the company's ability to meet financial obligations. There are several different ratios, but the main factors looked at include debt, equity, assets and interest expenses.

2. MONETARY-POLICY:

Monetary policy is the process by which the monetary authority of a country controls the supply of money, often targeting a rate of interest for the purpose of promoting economic growth and stability.

3. FISCAL POLICY:

In economics and political science, fiscal policy is the tool of government revenue collection (mainly taxes) and expenditure (spending) to influence the economy.

4. BULL MARKET:

 A financial market of a group of securities in which prices are rising or are expected to rise. 

5. Bear Market:

A market condition in which the prices of securities are falling, and widespread pessimism causes the negative sentiment to be self-sustaining. As investors anticipate losses in a bear market and selling continues, pessimism only grows.