onomi on epts and erminolo ies 22.25
in recent times as some of them were caught out by
betting the wrong way on the market movements.
hoArDing
Some of them also made huge losses by buying the An act of unproductive retention of money or
complex packages of debt that contain many of goods.
the US mortgage loans which turned sour.
In recent years, there have been several high- hog cycles
profile hedge fund collapses. The Long -Term
capital Management (LTCM) of the US failing in The cycles of over and under production of goods.
1998 had threatened the very stability of the US This takes place due to time lag in the production
financial system—looking at the level in impact process–this happens in case of agricultural
the regulators managed a bail out for it to prevent products specially.
an imminent financial collapse. In 2006, the world
saw the collapse of another hedge fund in the US, impossible trinity
the Amaranth which lost $6.5 billion in a month
in the natural gas market (The fund in place of a This is a term to show the central bank’s dilemma
bail out was closed down by the regulators with in targeting for stable exchange rate, interest rate
the investors losing heavily.) and inflation while announcing the credit and
monetary policy for the economy. As this task is
herfinDAhl inDex not only challenging but also not possible, it is
This is a measure of the level of seller concentration called as the ‘impossible trinity’.
in a market which takes into account the total
number of firms and their relative share in the inDiA’s sovereign rAting
total market output. Also known as Herfindahl-
Hirschman Index. Presently, India is rated by six international credit
rating agencies, namely Standard and Poor’s
hiDDen price rise (S&P), Moody’s Investor Services, FITCH,
Dominion Bond Rating Service (DBRS), the
A quantitative or qualitative decrease in a product Japanese Credit Rating Agency (JCRA), and
without changing the price. the Rating and Investment Information Inc.,
Tokyo(R&I). Information flow to these credit
hiDDen tAx rating agencies has been streamlined.
Addition of an indirect tax into the price of a good
or service without fully informing the consumer inDifference curve
as, for example, the magnitude of the excise duty
A curve on the graph showing the alternative
in tobacco and alcoholic products is so high that
the taxes are added to the products directly. combinations of two products, each giving the
same utility/satisfaction.
historic cost
inDuceD investment
The original cost of purchasing an asset such as
land, machine etc., which is shown in the balance The part of investment (increase or decrease)
sheet of a firm under this title with an adjustment which takes place due to a change in the level of
for the replacement cost of the asset. national income.