This is a tax imposed on an ad-valorem basis on imports, i.e., fixed in the form of a percentage on the value of the commodity imported. Income Elasticity of Demand It refers to proportionate change in the quantity of a commodity demanded after a unit proportionate change in the income of consumers with prices held constant.
It is a weighted average of a number of statistical observations of some economic attribute, as a percentage of a similar weighted average calculated for the attribute at an earlier, or base, period. Prices and production are among the typical economic attributes for which index numbers are calculated.
Inflation is persistent increase in the general level of prices. It can also be seen as a devaluing of the worth of money. 1-Inflationary Gap. It refers to a situation in which aggregate demand is at an equilibrium level in excess of the full-employment level of output. If it exists, all resources in the economy are fully utilised.
Insider trading is the trading of a corporation’s stock or other securities (e.g., bonds or stock options) by individuals with potential access to non-public information about the company. In most countries, trading by corporate insiders such as officers, key employees, directors, and large shareholders may be legal, if this trading is done in a way that does not take advantage of non-public information.
When corporate insiders trade in their own securities, they must report their trades to the exchange. Illegal insider trading refers to buying or selling a security after receiving ‘tips’ of confidential securities information.
It is illegal when the material information is still non-public trading while having special knowledge is unfair to other investors who do not have access to such knowledge. Illegal insider trading therefore includes tipping others when you have any sort of non-public information.
Examples of insider trading I Corporate officers, directors, and employees who traded the corporation’s securities after learning of significant, confidential corporate developments; I Employees of law, banking, brokerage and printing firms who were given such information to provide services to the corporation whose securities they traded; I Government employees who learned of such information because of their employment by the government; and I Other persons who misappropriated, and took advantage of, confidential information from their employers.
Disposal of occasional surpluses by exporting them at exceptionally low prices without any plans to eliminate competition. It is also known as sporadic dumping. Islamic Banking Islamic banking refers to a banking system based on principles of Islamic law (Sharia). Islamic banking has the same purpose as conventional banking except that it operates in accordance with Fiqh al-Muamalat (Islamic rules on transactions). The basic principle of Islamic banking is the sharing of profit and loss and the prohibition of riba (usury).
Halal is acceptable, and in financial terms it translates into those forms of banking and finance that avoid the religious prohibition against taking interest payments. Haraam, on the other hand, is what is forbidden by Islamic law; in financial terms, it applies chiefly to lending/borrowing money on interest. In Murabaha, funds are used by the bank to buy goods from a supplier and sold to a buyer immediately, and the buyer pays a margin over cost on a deferred payment date. In musharaka transactions, the bank participates with other parties in trade financing, real estate, leasing, and industrial projects, with net profits being shared in proportions as agreed at the beginning. Muqarada is a joint venture by finance providers, again on profit/loss sharing basis. Shirkah is a partnership between a bank and a customer to share the gains and risks of a project. Ijarawaiktina is the technique of leasing large capital items, such as property, plant and machinery, for monthly rental payments; on the expiry of the lease, the lessee buys the equipment. Lending to consumers is managed without interest by levying a service charge on consumers to cover bank expenses. Fees are charged for services offered by the banks where the banks’ own money is not used.
Islamic finance was practiced predominantly in the Muslim world throughout the Middle Ages.
The revival of Islamic banking coincided with the world-wide celebration of the advent of the 15th century of Islamic calender (Hijra) in 1976.
Incidentally, the Dubai Islamic Bank is reported to be the world’s first full-fledged Islamic bank, formed in 1975. India had no full-fledged Islamic bank as of 2007, but there were NBFIs operation along Islamic principles.