Archives: Terms

Definition of Debenture A debenture is a type of debt instrument that is not secured by physical assets or collateral. Debentures are backed only by the general creditworthiness and reputation of the issuer. Both corporations and governments frequently issue them to secure capital. Unlike secured loans, where borrowers pledge assets, […]

Definition of Death Duties Death duties, more commonly known as estate taxes or inheritance taxes, are forms of taxes that are levied on the property of a deceased person. While often used interchangeably, there are subtle differences between the two. Estate taxes are charged against the entire estate of the […]

Definition of Dear Money Dear money refers to a situation in which money becomes expensive to borrow due to high interest rates. This scenario typically occurs when central banks, such as the Federal Reserve in the United States, decide to tighten monetary policy to control inflation or stabilize the economy. […]

Definition of Deadweight Burden of Taxes The deadweight burden of taxes, often simply referred to as deadweight loss or excess burden, denotes the loss of economic efficiency when the equilibrium for goods or services is not achieved due to tax imposition. It represents the difference between the total benefits that […]

Definition of Dawn Raid A dawn raid is an aggressive business strategy, usually associated with the acquisition of a significant stake in a company’s shares at the very beginning of trading hours. This is done by purchasing a large number of shares as soon as the stock exchange opens, taking […]

Definition of Data Mining Data mining is the process of discovering patterns, correlations, trends, and useful information from large sets of data using statistical, computational, and machine learning techniques. By analyzing vast amounts of data stored in databases, data warehouses, or other information repositories, data mining aims to extract meaningful […]

Definition of Cyclically Adjusted PSBR Cyclically Adjusted Public Sector Borrowing Requirement (PSBR) refers to the measure of the government’s budget deficit or surplus, adjusted for the cyclical fluctuations in the economy. It represents the fiscal position of the government under the counterfactual scenario of a stable economy operating at its […]

Definition of Cyclically Adjusted Budget Deficit A cyclically adjusted budget deficit refers to the estimate of a government’s budget deficit if the economy were at a theoretical level of full employment, removing the effects of economic cycles on government spending and tax revenues. Unlike the actual fiscal deficit, which varies […]

Definition of Cyclical Adjustment Cyclical Adjustment refers to the process of isolating the effects of the business cycle on economic variables. This involves adjusting economic data to reflect underlying economic trends by removing fluctuations caused by cyclical factors. Essentially, cyclical adjustment helps to identify the potential output and more stable […]

Definition of Cuts in Expenditure Cuts in expenditure refer to reductions in spending by individuals, organizations, or governments. These cuts can be voluntary or forced by economic circumstances and are often used as a strategy to manage budget deficits, reduce debt, or reallocate resources more efficiently. In the context of […]