 Microeconomics & Macroeconomics

Analysis dealing with the behavior of individual elements in an

economy-such as determination of the price of a single product or
the behavior of a single consumer or business firm.
Analysis dealing with the behavior of the economy as a hole with
respect to output ,income ,the price level, foreign trade,
unemployment and other aggregate economic variables.

 Exchange Rate
The rate or price at which one country’s currency in exchanged for
the currency for the example, if one British pound cost $ 1.40 then
the exchange rate for the pound is $ 1.40

 Capital
In economic theory, one of the triad of productive inputs (land, labor
and capital). The major components of capital are equipment,
structures and inventory. In accounting and finance “Capital” means
the total amount of money subscribed by the shareholder-owners of
a corporation, in return for which they receive shares of the
company stock.

 Common stock
Stock that confers voting right but does not grant preferential right
of dividends or claims against the assets of the firm.

 Preferred Stock
Stock that has preference over common stock in the payment of
dividends and in claims against the assets of the firm but does not
confers voting right.

 Portfolio Management
An economic theory that describes how rational investors allocate
their wealth among different financial assets that is how they put
their wealth into a portfolio. A management who allocate their
wealth into a portfolio this management called portfolio
management.

 Insurance
Insurance is defined as a co-operative device to spread the loss
caused by a particular risk over a number of people who are
exposed to it and who agree to themselves against that risk. Risk is
uncertainty of a financial loss.

 IMF (International Monetary Fund)

IMF is an international financial organization founded in 1944 that
lends money to countries to conduct international trade.

 GAAT (General Agreement on Tariffs and Trade)

An agreement signed in 1947 that formed an international
organization to work to reduce or eliminate tariffs and other barriers
to international trade.

 World Bank
An international organization that lends money to underdeveloped
and developing countries to fund the development of roads,
factories and medical facilities.

 Marketing Mix
The combination of four elements product, price, promotion and
distribution used to satisfy the needs of the target market.

 Market Segment
A group individual or organizations with one or more similar product
needs.
The division of market into different homogeneous group of
consumer called Market segment.

 Product Segment
The theoretical life of a product consisting of four stages:
introduction, growth, maturity and decline.

 Product Line
A group of related products considered a unit because of marketing,
technical or use similarities and marketed by a firm.

 Debit
An accounting term signifying an increase in assets or decrease in
liabilities in balance of payment accounting. A debit an item such as
imports that reduces a country’s stock of foreign currencies.

 Credit
In monetary theory, the use of someone else’s funds in exchange for
a promise to pay at a later date for example- Short term loans from
a bank credit extended by suppliers and commercial paper. In
balance of payment accounting, an item such as exports that earns
a country foreign currency.

 Accounting Cycle
The steps- analyzing, recording, posting and preparing reports by
which the results of business transactions are communicated.

 Budget
A quantitative plan for acquiring and using resources over a
specified time period.

 CVP Analysis
Cost-Volume-Profit Analysis: CVP Analysis is one of most
powerful tools that help management to make their decision. It
helps them understand the interrelationship between cost volume
and profit in an organization by focusing of interactions among the
following five elements:

• Prices if products
• Volume or level of activity
• Per unit variable cost
• Total fixed costs
• Mixed of product sold.

 ABC Analysis (Activity based costing analysis)

ABC is a costing method that is designed to provide managers with
cost information for strategic and other decisions that potentially
affect capacity and therefore “fixed” as well as variable costs.

 Ratio Analysis
Method of analyzing financial information by comparing logical
relationships between various financial statement items.

 Business
The exchange of goods, services or money for mutual benefit or
profit
.
  Secondary Market
The market in which used stocks are traded after they have been
issued by corporations.
 Industry
A group of firms producing similar or identical products.

 Primary Market
The market in which firms issue new securities to raise corporate
capital

 OTC Market (Over- The- Counter) Market

A large collection of brokers and dealers connected electronically by
telephones and computers that provider for trading in securities not
listed on the organized exchanges.

 Future Market
This terms refer to the assets are being bought or sold for delivery
at some later date such as six months on a year into the future.

 Option Market
This term refers to the holder who takes some option by contract
and holder right to buy or sell an asset at some predetermined price
with in the specified period of time.

 Demand
The quantity of a product that consumers will purchase at various
prices.

 Supply
The quantity of a product that producers will sell at various prices.

 Export
Selling domestic made goods in another country.

 Import
Purchasing goods made in another country.

 Elasticity of Demand
The demand elasticity refers the impact of a price change on total
revenue. Demand is elastic if a price reduction increases total
revenue. Demand is inelastic if a price reduction decreases total
revenue in the unit elastic case a p[rice change on total revenue.
  Elasticity of Supply
Price elasticity of supply measures the percentage change of output
supplied by producers when the market price changes by a given
percentage.

 Balance Sheet
A financial statement that indicates a firm’s financial position at a
particular moment in time ; reflects a firms solvency or its ability to
pay its debts as they come due also called a statement of financial
position.

 Inflation
The inflation rate is the percentage of annual increase in a general
price level.

 Deflation
A fall in the general level of prices.

 GDP ( Gross Domestic Product)

GDP equals the sum of the value of all consumption and investment
goods, government purchase and net exports to other lands.

 GNP ( Gross National Product)

Gross national product is the total final output produced with inputs
owned by the residents of a country during a year.

 Capital Market
Market in which financial resources (money, stock, bonds) are
traded. These along with financial intermediaries are institutions
through which savings in the economy are transferred to investors.

 Money Market
A term denoting the set of institutions that handle the purchase or
sale of short term commercial paper.

 Tangible Asset
An asset that has a physical form such as machinery, buildings and
land.

 Intangible Asset
An asset that is not physical in nature. Corporate intellectual
property (items such as patents, trademarks, copyrights, business
methodologies), goodwill and brand recognition are all common
intangible assets in today's marketplace.

 Bank Rate
The rate at which central banks lend funds to national banks.
A central bank adjusts the supply of currency within national borders
by adjusting the bank rate. When the central bank reduces the bank
rate, it increases the attractiveness for commercial banks to borrow,
thus increasing the money supply. When the central bank increases
the bank rate, it decreases the attractiveness for commercial banks
to borrow, consequently decreasing the money supply.

 Call money market

The call money market is a mechanism that allows both dealers and
brokers to locate and borrow funds that can be used for investment
needs. The funds located through the money market can be utilized
to provide financing for the purchase of securities that can be added
to the portfolio of the investment firm, or as a resource that will
cover the margin accounts of the firm’s clients

 Fiscal year
A fiscal year (or financial year, or sometimes budget year) is a
period used for calculating annual ("yearly") financial statements in
businesses and other organizations.

 Revenue Budget
The Revenue Budget consists of revenue receipts of government
and the expenditure met from these revenues. Tax revenues are
made up of taxes and other duties that the Union government
levies.

 World Trade Organization

The World Trade Organization (WTO) deals with the rules of trade
between nations at a global or near-global level. The World Trade
Organization is the most powerful legislative and judicial body in the
world.

 Dhaka Stock Exchange (DSE)

The Dhaka Stock Exchange (DSE) is registered as a Public Limited
Company and its activities are regulated by its Articles of
Association rules & regulations and bye-laws along with the
Securities and Exchange Ordinance, 1969, Companies Act 1994 &
Securities & Exchange Commission Act, 1993.
 Chittagong Stock Exchange (CSE)
Chittagong Stock Exchange is a stock exchange located in the port
city of Chittagong in southeastern Bangladesh. It was established in
1995 as the second stock exchange of the country. The exchange is
located in the Agrabad commercial area of the city.

 The Asian Development Bank (ADB)

The Asian Development Bank (ADB) is a regional development bank
established in 1966 to promote economic and social development in
Asian and Pacific countries through loans and technical assistance. It
is a multilateral development financial institution owned by 67
members (as of 2 February 2007)[1], 48 from the region and 19
from other parts of the globe. ADB's vision is a region free of
poverty. Its mission is to help its developing member countries
reduce poverty and improve the quality of life of their citizens.

 Islamic Development Bank (IDB)

Islamic Development Bank (also known as Islamic Development
Bank, is a multilateral development financing institution located in
Jeddah, Saudi Arabia. It was founded by the first conference of
Finance Ministers of the Organization of the Islamic Conference
(OIC), convened 18 December 1973.

 International Bank for Reconstruction and Development

(IBRD)
The International Bank for Reconstruction and Development (IBRD)
is institutions that comprise the World Bank Group. The IBRD is an
international organization whose original mission was to finance the
reconstruction of nations devastated by World War II. Now, its
mission has expanded to fight poverty by means of financing states.

 Bangladesh Shilpa Rin Sangstha (BSRS)

Bangladesh Shilpa Rin Sangstha (BSRS) established on 31 October

1972 by the President's Order No. 128 of 1972 to provide credit
facilities and other assistance to industrial concerns and to
encourage and broaden the base of investment in Bangladesh.

 Investment corporation of Bangladesh (ICB)

Investment Corporation of Bangladesh (ICB) established on 1
October 1976 under the Investment Corporation of Bangladesh
Ordinance 1976. It is an investment bank established to accelerate
the pace of industrialization and develop a sound securities market
in Bangladesh.

 Commerce
The exchange or buying and selling of commodities; esp. the
exchange of merchandise on a large scale between different places
or communities extended trade or traffic.

 Bangladesh Shilpa Bank (BSB)

Bangladesh Shilpa Bank (BSB) establish on October 31, 1972. It
head office in Dhaka and it has 21 Division. Its Zonal office, branch
office 15 and manpower 769.

 LC(Letter of Credit)
Letter of Credit means a letter from one banker to another
authorizing the payment of a specified sum to the person named in
the latter on a certain specified conditions. Commercially, latter of
credit are widely used in the international import and export trade
as means of payment.

 GAAP (Generally Accepted Accounting Principle)

A set of rules and practices having substantial authoritative support
that are recognized guide for financial reporting purposes.

 International development authority (IDA)/ (IDBB)

Industrial development Bank of Bangladesh