Found 235 Articles for Economics

Introduction There is no limit on probable money deposits made by customers in a bank. However, in India, the Central Bank of India, the Reserve Bank has put a limit to which the banks can deposit the amount of loans in their possession. This is done to make sure that the banks are not over lending. Credit Creation Demand deposits are considered an important part of the money supply. By increasing demand deposits, the money supply can be expanded. The banking system is usually based on credit. Credit means getting the purchasing power now and paying for it in the ... Read More

What are liabilities? Liabilities mean the debt amount owed by a company to pay past transactions. A company may owe this payment to creditors, lenders, banks, or other financial institutions. These payments are recorded as credits in the balance sheet of a company. Usually, short-term liabilities are placed before long-term ones. According to the balance sheet, liabilities are total assets minus shareholders’ equity. Liabilities = Total Assets – Total Shareholders Equity Significance of liabilities section of the balance sheet The liabilities component of the balance sheet helps businesses increase their value creation and organize business operations processes. They also ... Read More

Coefficient of Correlation Coefficients of correlation are generally used in statistics to measure a relationship between two variables. The correlation generally shows a specific value of the degree of a linear relationship between two variables, say X and Y. There are many types of correlation coefficients that are used in statistics. However, Karl Pearson’s correlation (also known as Pearson’s R) is the correlation coefficient that is most frequently used in linear regression. Types of Correlation Coefficient Depending on the direction of the relationship between variables, correlation can be of three types, namely – Positive Correlation (0 to +1) Negative ... Read More

Introduction Joint stock companies are the leaders in their businesses and almost all bigwigs in their respective fields that we see on TV and in magazine advertisements are joint stock companies. Joint stock companies’ prowess is so heavy that sole proprietorships or partnerships cannot challenge them in their businesses. Joint stock companies are usually large-scale enterprises that have numerous shareholders and operate around the world. What is a Joint Stock company? A joint stock company is a commercial firm that has joint owners. Simply put, the organization is owned jointly by its owners. The owners own the company by purchasing ... Read More

Economics can be divided into two broad categories: microeconomics and macroeconomics. Microeconomics deals with only specific segments of an economy such as individual labour market, demand and supply at the local level, consumer behavior, etc. Macroeconomics on the other hand covers a wide range of economic issues starting from national output, gross domestic product, fiscal deficit, inflation, etc. that affect the whole nation. In this article, we will compare and contrast the different features of Microeconomics and Macroeconomics and highlight the points that differentiate the two. What is Microeconomics? Microeconomics is the study of how people and individual consumers make ... Read More

The health of the financial system has far-reaching implications for people's personal finances and the status of the national economy. Despite the importance of maintaining personal financial management, the great majority of people do not have full control over their own money, both in terms of spending and savings. When gauging the efficacy of a country's economic resources, the two key metrics used are discretionary and disposable income. They're often used interchangeably, but there are several key differences to keep in mind. What is Disposable Income? Once taxes have been taken from an employee's paycheck, the remaining sum is known ... Read More

Multiple indications are beneficial during a company evaluation since they each shed light on a different facet of the company being examined. The financial well-being of a business is evaluated using many key metrics. Some key performance indicators are more appropriate for usage by certain industries. EBIT stands for "earnings before interest and taxes, " which is what the term refers to. You may also hear this term as "profit before interest and taxes." It is also known as "operational income" since it reflects the operations that generate profits for a business. This is because it symbolizes how a ... Read More

One of the most crucial components of every business that needs constant monitoring is its key performance indicators. These assess the degree to which an organization is succeeding in its aims and identify the places where it may most benefit from improvement. With the advent of analytical tools, it has been common practice to provide justifications for and strategies for achieving stated goals in numerically based reports. Among the many KPIs in use today, dashboards and scorecards stand out as some of the most used visualizations. Despite their differences, the two have a lot in common, and here are ... Read More

In today's cutthroat markets, client satisfaction is the single most important factor in a company's ability to grow and succeed. This is in addition to other factors, such as competitive pricing, product accessibility, and high quality. Satisfied clients are more likely to buy from you again and to tell their friends about your business. Within the realm of business, the terms "customer results" and "product sales" are inextricably interwoven when discussing this issue. In contrast, there are differences between them. What are Customer Results? Customer results are those results that have been reported as a result of delivering products ... Read More

Economic expansion is affected by several factors, including capital creation, technology development, the interplay of social and political forces, and the accessibility of human and natural resources. An increase in national income and employment rates, and therefore in people's standard of life, is the end outcome of an economy that grows steadily through time. Even though this is the norm, recessions and credit crunches can result from causes such as a drop in consumer confidence in the economy, a rise in asset values, a drop in salaries, a depreciation in the value of the currency rate, and reduced interest rates. ... Read More