DEFINITION of 'Surplus Spending Unit'

An economic unit with income that is greater than or equal to expenditures on

consumption or real investment over the course of a period. A surplus spending unit
will use its additional income to buy goods, invest, lend money to deficit spending
units or pay off its own deficit from an earlier period.
DEFINITION of 'Deficit Spending Unit'
A economic term used to describe how an economy or economic unit within an
economy has spent more than it has earned over a period of time. To raise the
necessary funds to finance a deficit, the economic unit may sell debt (or equity if the
entity is a corporation).
Mudarabah bondIn Islamic finance, mudaraba is a trust financing contract.
Mudaraba may be conducted between investment account holders as fund
providers and the Islamic bank as a mudarib. It may also be conducted between the
Islamic bank, as fund provider, on behalf of itself or on behalf of investment account
holders, and business owners and other craftsmen or traders etc.
1. 'Treasury Bill-A short term debt obligation backed by the government with a
maturity of less than one year.Treasury notes They are issued by the govt. and with
a maturity between one and seven years. Basically, these are instruments of capital
market but when a firm purchases a treasury note which has less than one year left to
maturity is in the same position of buying a treasury bill.G
iv) Commercial paper - Commercial paper is not usually backed by any form of collateral, so only

firms with high-quality debt ratings will easily find buyers without having to offer a substantial
discount
(higher
cost)
for
the debt
issue.

v) Certificate of Deposit. A certificate of deposit is a promissory note issued by a bank. It is

a time deposit that restricts holders from withdrawing funds on demand. Although it is still possible
to
withdraw
the
money,
this
action
will
often
incur
a
penalty.

Cumulative Preferred share: Cumulative preference share is stock, the stipulated

dividend of which, if not paid in full in one or more years, carries over or accumulates
from year to year until fully paid. Commons Shareholders are not entitled to receive
any dividend whatever as long as the cumulative preferred dividends are in
arrears.Non-cumulative Preferred Share: On the other hand when the provision is
such that dividends or part of dividends not paid to the preferred shareholders in any
given year are lost to them forever, is known as noncumulative preference share.