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Interest Rate Swaps: An interest rate swap is the transfer of contractually agreed between two

counterparties of their respective interest rate obligation. Interest rate swaps are commonly used as a means
of converting fixed rate to floating rate debt and vice versa.

Operating Ratio: A ratio that shows the efficiency of a company’s management by
comparing operating expense to net sales. Calculated as
Operation ratio = Operating expense/net sales
Wholesale Price Index (WPI): WPI is taken into consideration while calculating the inflation. A change
has recently been made in the WPI. Its present base year will be taken as 2004-05 earlier it was 1993-34.
Base year mean (2004-05 = 100). Total articles taken into consideration will be 676 earlier these were
435.676 include 102 Primary Articles, 19 fuel & power, and 555 of Manufacturing Products. Earlier WPI
was calculated on Weekly basis but now it is calculated on Monthly Basis. First time inflation was
calculated in August 2010 (on new system).
Consumer Price Index (CPI) : Most advanced nations base their policies on retail price inflation but
India uses wholesale price inflation, CPI is largely a segmental and is superior to the WPI, CPI capture
consumption price both at urban and rural centers, as in WPI 676 items are covered and base year is taken
as – 2004-05 and for macroeconomic policies. Whereas in CPI 320 items are taken from (CPI-IW) CPI
industrial workers and 260 items are taken from both CPR rural laborers and CPI agricultural laborers and
the base year for calculation is taken as 2010.
Coupon Rate: Specified interest rate on a fixed maturity security fixed at the time of issue. The coupon
rate of a bond is the amount of interest paid per year as a percentage of the face value or principal.
NRO (Non Resident Ordinary a/c) : In this account , a person cannot repatriate income without RBI
approval but can remit Interest thereof.
NRNR (Non Resident Non Repatriable A/c ) : Under this account Principal amount in not permissible to
repartriate but interest can be.
NRE (Non Resident External) : In this account Funds and interest both can be remitted without RBI
permission. On NRE deposits the maximum ceiling is Libor rate + 175 basis points (Now there is no such
NPA (Non Performing Assets) : Interest or Installment of Principal remains overdue for a period of more
than 90 days in respect of a Term Loan/ overdraft/ Cash credit.
Teaser Rate of Interest : This rate is typical low then the prevalent rate in the market. This is just to allure
the customer. This rate is charged only for a little time. And after that it gradually touch the index rate or
even more than that. This is a technique to attract customers.
Appropriation Bill : It is presented to parliament for its approval, so that the government can withdraw
from the Consolidated fund the amounts required for meeting the expenditure charged on the Consolidated
Fund. No amount can be withdrawn from the Consolidated Fund till the Appropriation Bill is voted is

CIBIL {Credit Information Bureau (India) Limited} : An effective mechanism for exchange of information between banks and Financial Institutions for curbing the growth of NPAs.g.Call Money: Itner Bank call market is a part of the domestic money market from where banks borrowed and lent for one day called as Money at call and for a period more than 1day & upto 14days is called Short notice or Notice money without any collateral security. State bank india branch in USA. Nostro Account: When national bank is opened in foreign with currency is known as Nostro a/c. Currency War: This is the other form of Protectionism. It has two components Capital Receipts and Capital Expenditure. Money lend for 15days or more is called Term money.Normally funds are borrowed for 1 day and upto 3 days on weekends just to balance the Cash Reserve Ratio. The big example of this is CHINA that is holding their currency since 2008. It also incorporates transactions in the Public Account. . It could be a cause of future Trade war. Capital Budget: It consists of capital receipts and payments. e. In this the tendency of every nation is that the value of their currency should not appreciate.