onomi on epts and erminolo ies 22.37
norkA numerAire
Indians work abroad and remit much of their A monetary unit which is used as the basis for
earnings back home. Kerala is a state where non- denominating international exchanges in a
residents contribute significantly to the state’s product and financial settlements on a common
resources. Keeping this important revenue channel basis. For example, the US dollar being used as the
in mind, the Government of Kerala launched the numeraire of international oil trade, the Special
department of Non-resident Keralites’ Affairs Drawing Rights (SDRs) as the numeraire of the
(NORKA) in 1996 to redress the grievances of IMF transactions, etc.
Non-Resident Keralites (NRKs). NORKA is the
first of its kind formed by any Indian state. nvs
It makes efforts to solve the grievances raised in
Non voting Shares (NVS) are the equity shares
petitions for remedial action on threats to the lives
not having right to vote at the general meetings of
and property of those who are left at home, tracing
the company. But these shares get higher dividend
of missing persons abroad, compensation from
than the shares having voting rights. A company
sponsors, harassment from sponsors, cheating by
in India may issue such shares maximum to the 25
recruiting agents, educational facilities for children
per cent of the total issued share capital and such
of NRKs, introduction of more flights, assistance
shares cannot get more than 20 per cent higher
to stranded Keralites, etc.
dividend than the shares with voting rights.
normAl gooDs
oil bonDs
The goods whose demand increases as income of
Oil bonds are special bonds issued by the GoI
the people increases. It is just opposite of inferior
to the oil marketing public sector companies
goods.
to cover-up their losses in marketing. In case
of global price rise in crude oil the companies
null hypothesis
needed to increase prices of their products. But
An idea that is put to the test. In econometrics, to avoid inflationary effects on the economy, the
experts start with a null hypothesis (i.e., a particular oil marketing companies were not allowed to do
variable equals a particular number), then crunch so—ultimately leading them to fetch huge losses.
the data to verify it in accordance with the laws of So that these companies are able to arrange funds
statistical significance. The chosen null hypothesis (to fill up their losses), the government used to
is often just opposite to what the experimenter issue oil bonds. These bonds, backed by sovereign
believes. power, are marketable in the financial system of
Statistical significance means that the India. After the domestic prices of petrol, diesel,
probability of getting the result by chance is low. lubricants and aviation turbine fuel (ATF) have
It is most commonly used measure is that there been linked to the international crude prices need
must be a 95 per cent chance that the result is right of issuing such bonds have not been felt. The
and only 1-in-20 chance of the result occurring declining global crude oil prices of recent times
randomly. have also helped the GoI to avoid such instances.