Types of economies: Market, Command and Mixed Economies
We generally identify four different types of economies viz. market economy, command/Planned economy, mixed economy. and traditional economy. Let us examine here how these economies function. What is a market economy? A Market economy is an economy in which most goods and services are produced and distributed through free markets wherein the market determines investments,…
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What is capitalism?
Capitalism is an economic and political system in which private ownership controls the trade and industry of the country. In capitalism system the wealth is concentrated in the hands of a few people. The idea of these private owners is capital accumulation; make maximum profit without worrying about social constraints like unemployment, exploitation of labours…
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What is the difference between Micro economics and Macroeconomics?
Microeconomics refers to supply and an individual market. On the other hand, macroeconomics is the study of a national economy as a whole. The key differences between micro and macroeconomics are distinguished as follows. Microeconomics Macroeconomics Microeconomics studies the particular market segment of the economy Macroeconomics studies the whole economy, that covers several market segments…
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What is the difference between underwriter and investment banker?
Underwriting is a process generally takes place in initial public offerings (IPO). The underwriter to an IPO guarantees payment in case of damage or financial loss to the share issuing company. The under writer may accept financial risk for liability either on firm commitment or best effort basis. Here best efforts means that the underwriters…
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What is negotiable Certificate of Deposit?
A negotiable certificate of deposit (NCD) is a certificate of deposit issued by the banks and it is freely negotiable unlike non-negotiable CDs which cannot be transferred, sold, bought, or exchanged. The Certificates of Deposit (CDs) were introduced in India in 1989.Minimum amount of a CD should be Rs.1 lakh. In India, CDs in physical…
WHAT IS AN ESCROW ACCOUNT?
Escrow account is an account placed in trust with a third party usually a bank to hold money which belongs to others. The release of money parked in escrow account will be dependent on conditions agreed to by the transacting parties. The Escrow services are offered to meet diverse requirements of clients that include Sale…
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