Agricultural price parity is the relationship between the cost of agricultural and industrial products, in which the exchange between city and countryside is mutually beneficial.

Administrative monopoly is a monopoly that arises in a command economy due to the concentration, at the direction of the state planning authorities, of the production of certain products in one or a small number of enterprises.

Assets are everything of value that a person, company or government owns.

Excise tax is a tax levied on the buyer when purchasing certain types of goods and is usually set as a percentage of the price of this product.

A joint stock company (JSC) is an economic organization, the co-owners of which can be a large number of owners of funds, each of whom receives the right to a part of its property and profits, while at the same time being liable for its obligations only within the limits of the amounts once spent on the purchase of shares.

A share is a security sold to an investor in exchange for funds received from him for the development of the company and confirming his rights as a co-owner of the company’s property and its future income.

Barter is the direct exchange of some goods or services for others without the use of money.

Poverty is the standard of living of a family at which its income allows it to purchase only a small part of the standard set of goods and services for a given country, which forms the basis for determining the cost of living in a given country.

Non-cash funds are amounts stored in the accounts of citizens, firms and organizations in banks and used for settlements by changing information in documents confirming who owns what amount of such funds.

Unemployment is the presence in the country of people who are able and willing to work for hire, but cannot find work in their specialty or find employment at all.

Goods are everything that people value as a means of satisfying their needs.

Family wealth is the property of the family, free from debt.

Accounting profit is the difference between sales revenue and the firm's accounting costs.

Accounting costs are costs associated with the use of resources acquired by the company from other companies or citizens for the needs of the company.

Budget is a consolidated plan for collecting revenues and using the funds received to cover the expenses of federal or local government bodies.

Gross national product is the total market value of all final goods and services produced in a country in a year.

Currency (exchange) rate is the price of one national monetary unit, expressed in monetary units of other countries.

The quantity of supply is the volume of a product of a certain type (in physical measurement) that sellers are ready (willing and able) to supply to the market during a certain period of time at a certain level of the market price for this product.

External (side) effects are damage (or benefits) from the production of any good that have to be borne (or can be received) by people or firms not directly involved in the purchase and sale of this good.

External public debt is the debt of public authorities to governments, international banks and financial organizations that have lent money on the basis of government agreements.

Domestic public debt is the debt of government authorities to citizens, banks and firms of their country, as well as foreigners who purchased domestic loan securities.

Sales revenue is the amount of money received upon sale and is equal to the product of the number of goods sold and the price at which they were purchased.

Hyperinflation is a situation in the economy when the increase in the general level of prices in the country exceeds 50% within a month and this continues for more than three months in a row.

Government securities are obligations of the state to return the borrowed amount plus interest for the use of this money.

Public debt is the amount of loans taken by government agencies and not yet repaid to creditors.

The production possibility frontier is the volume of production that can be achieved by a country with the fullest use of its available production resources.

Free goods are goods, the available volume of which is greater than people's needs, and their consumption by some people does not lead to a shortage of these goods for others.

Money capital is part of family savings, which is transferred on a paid basis to firms for their purchase of productive capital.

Money is a special commodity that: 1) is accepted by everyone in exchange for any other goods and services, 2) allows all goods to be uniformly measured for the needs of exchange and accounting, and 3) makes it possible to preserve and accumulate part of current income in the form of savings.

Deposits are all types of funds transferred by their owners for temporary storage to the bank with the right to use this money for lending.

Market defects (weaknesses) are the inability of market mechanisms to solve some economic problems at all or in the best possible way.

Shortage is a situation in the market when buyers at the existing price level are willing to buy a larger volume of goods than sellers are willing to offer for sale at that price.

A state budget deficit is a financial situation that arises when the state plans to spend an amount greater than it can actually receive revenue from all types of taxes and payments.

Dividends are part of the net profit of a joint-stock company, which is paid to its shareholders in proportion to the value of the shares they own.

A directive national economic plan is a method of distributing limited resources based on government assignments that are mandatory for all enterprises in the country.

The natural rate of unemployment is a situation where only frictional and structural unemployment exist in a country.

Natural monopolies are firms that control the entire market for certain goods or services due to their unique

A will is a legally formalized gift of wealth that takes effect upon the death of its owner.

Borrowed funds (credit) are funds that are provided to a company for use for a strictly fixed time and for a fee established in the loan agreement.

The law of exchange is the relationship between the average amount of money that a country needs to ensure normal money circulation and: 1) average prices of goods and services; 2) the quantity of these goods and services; 3) the speed of circulation of money.

The law of supply - an increase in prices usually leads to an increase in the quantity supplied, and a decrease in prices usually leads to its decrease.

Law of demand - an increase in prices usually leads to a decrease in the quantity demanded, and a decrease in prices leads to an increase (all other things being equal).

Engel's law - as family incomes increase, the share of expenses on food usually decreases, on consumer goods it stabilizes, and on education, medicine, recreation and entertainment it increases.

Land - all types of natural resources available on the planet and suitable for use in the production of economic benefits.

Excess (overstocking) is a situation that arises in the market when, at the existing price level, sellers offer for sale a larger volume of goods than buyers are willing to buy at that price.

Import is the purchase by residents of one country of goods manufactured in other countries.

Investment is the transfer by owners of savings of their funds for use to commercial firms or the state in order to generate income.

An individual offer is an offer with which an individual seller enters the market.

Individual demand is the volume of purchases that an individual buyer is ready to make on the market at a given price level.

Inflation is the process of increasing the general price level in a country, leading to the depreciation of money.

Information is all the information that people need for conscious activity in the world of economics.

Capital is the entire production and technical apparatus that people created from the substance of nature to increase their strength and expand the capabilities of producing the goods they need.

A cartel is a method of monopolizing a market, which consists of concluding an agreement between manufacturers of a homogeneous product to divide the market between them and agreeing on sales volumes and prices for each of the cartel members.

The command system (socialism) is a way of organizing economic life in which capital and land are actually owned by the state, which also distributes all limited resources.

A commercial bank is a financial intermediary engaged in: 1) accepting deposits; 2) providing loans; 3) organization of settlements; 4) purchase and sale of securities.

Competition is economic rivalry for the right to obtain a larger share of a certain type of limited resource.

An indirect tax is a fee in favor of the state, which is taken from citizens or business organizations only when they carry out certain actions.

Credit emission is an increase by a bank in the country's money supply by creating new deposits for those clients who received loans from it.

A loan agreement is an agreement between the bank and the one who borrows money from it (the borrower) defining the obligations and rights of each party, and above all: the term of the loan, the fee for using it and guarantees of repayment to the bank.

Creditworthiness is the borrower’s willingness and ability to fulfill his obligations under the loan agreement on time, that is, to return the borrowed amount and pay interest on its use.

Liquidity is the degree of ease with which any assets can be converted by the owner into money.

Lobby is a form of legal defense of the interests of a certain group of companies or citizens of the country through the formation of factions of deputies in legislative bodies.

A manager is a hired manager of a company, accountable to its owner.

The price mechanism is the formation and change of market prices under the influence of the clash of interests of buyers and sellers who make their decisions without external coercion.

Market monopolization is a situation when one of the sellers or buyers accounts for such a large share of the total volume of sales or purchases in a particular product market that he can influence the formation of prices and terms of transactions to a greater extent than other participants in this market.

A monopolist is a firm that is the only seller in the market and therefore its individual demand curve coincides with the market curve.

“Price scissors” is the degree of violation of price parity, that is, the difference in the rate of growth of prices for agricultural products and industrial products for rural areas.

Cash - paper money and small change.

Taxation is a mechanism for withdrawing part of the income of citizens and firms in favor of the state to solve national problems.

Wealth inequality - differences in the amounts of regularly received nominal income (per family member) and the market value of property owned by families.

Nominal income is the amount of money received by a citizen or family as a whole over a certain period of time.

Normal profit is the income that could actually be received by the owner of capital by investing not in his own business, but in other commercial and financial projects with the same level of risk.

Normal goods are goods for which the quantity of demand increases as the income of buyers increases.

Loan collateral (collateral) is the property of the borrower, which can be seized from him by the bank and sold to cover those debts of the borrower that he himself cannot cope with.

The total utility of a good is the total benefit (benefit) received by a person, firm or country from using the entire volume of goods of a certain type.

Public goods are goods or services that people use together and that cannot be the exclusive property of anyone.

Total costs are the costs of purchasing the entire volume of resources that the company has already used to organize the production of a certain volume of products.

The volume of need is the amount of goods of a certain type that a person would like to receive to satisfy his needs if these goods were available free of charge and without restrictions.

Limited (economic) goods are means of satisfying human needs that can only be created by spending factors of production and are received, as a rule, only on the basis of exchange.

Oligopoly is a market in which competition occurs only between a small number of firms that crowd out other competitors.

An industry is a group of firms that produce similar or identical products.

Variable costs are those costs that grow (decrease) with any increase (decrease) in production volumes.

Acquisition is a method of monopolizing a market, consisting of buying up competing firms and incorporating them into a company seeking to become a monopolist.

The purchasing power of money is the amount of goods and services that can be purchased with a certain amount of money at a given time.

Fixed costs are those costs that remain the same with small changes in the volume of production of goods or services.

Needs are a specific form of manifestation of human needs, depending on living conditions, skills, traditions, culture, level of development of production and other factors.

Duty is a fee levied by the state from citizens and business organizations for providing them with a certain type of service or issuing a permit to carry out a certain activity.

Private property right is the right of an individual, recognized and protected by law, to own, use and dispose of a certain type and amount of limited resources (for example, a plot of land, a coal mine or a factory).

The marginal (marginal) utility of a good is the benefit (benefit) received from an additionally used unit of the good.

Marginal costs are the actual amount of costs that it costs to produce each additional unit of production.

Supply is the dependence that has developed in a certain period of time of the supply values ​​on the market for a certain product during a certain period of time (month, year) on the price levels at which this product can be sold.

An entrepreneur is a person who, at his own risk and largely at his own expense, creates a company.

Entrepreneurship is a special kind of service provided to society, consisting of the creation of new commercial organizations called firms for the production and distribution of vital goods.

Profit is the difference between revenue from sales of goods or services and the costs necessary to produce and organize the sale of these goods and services.

A preferred share is a security, the owner of which has the right to dividends of a fixed amount, regardless of how much net profit the company actually received, but does not have the right to participate in its management.

The principle of absolute advantage - countries benefit from trading with each other if each of them specializes in the production of goods that it can produce with absolutely fewer resources than its trading partners.

The principle of relative advantage - each country is more profitable to export those goods for which its choice prices are relatively lower than in other countries.

Progressive income taxation is a financial mechanism used to solve two problems: raising funds for the needs of the country and smoothing out differences in the levels of well-being of families.

The subsistence minimum is the amount of money necessary for a person to purchase the amount of food that allows him to survive, as well as satisfy the minimum

Productivity is the amount of benefits that can be obtained from using a unit of a certain type of resource over a fixed period of time.

Derived demand is the demand for factors of production, predetermined by the demand for goods and services for the creation of which these resources are used.

Manufacturing is the process of using labor and material resources to create goods or services.

Protectionism is a state economic policy, the essence of which is to protect domestic producers of goods from competition from firms in other countries by establishing various types of restrictions on imports.

A trade union (trade union) is an organization that represents the common interests of employees of certain professions or a certain industry in negotiations with entrepreneurs.

Direct tax is a fee in favor of the state levied on each citizen or business organization.

Labor force is the total number of citizens of a country of working age who have jobs, and citizens who cannot find work for themselves.

Equilibrium price is the price at which the volume of goods that producers (sellers) agree to offer for sale at that price coincides with the volume of goods that buyers agree to buy at that price.

Distribution - the provision of resources between firms, and produced goods - between people in accordance with some criteria by which these people are entitled to receive such benefits.

Real income is the amount of goods and services that a citizen or family can purchase in a certain period of time with their nominal income.

Reserve requirements are a mandatory proportion of the formation of partial reserves established by the central bank of the country.

Rent is the general name for the income of land owners and owners of other factors of production, the supply of which is strictly fixed.

Market - all activities associated with the purchase and sale of goods of a certain type in a certain region or various regions where goods can be delivered in the usual way.

A market of monopolistic competition is a situation characterized by the fact that, in order to satisfy the same need, sellers begin to offer buyers many varieties of substitute products with significant differences, but each variety is offered to the market by only one seller.

The labor market is a set of economic and legal procedures that allow people to exchange their labor services for wages and other benefits that firms agree to provide them in exchange for labor services.

A market of pure (perfect) competition is a situation characterized by a clash in the competition for the money of buyers of many producers of the same type of goods, none of which has control over such a market share as to be able to influence sales volumes and market prices in their own interests.

A pure monopoly market is a situation where there is only one seller in the market.

Market supply is the total supply of goods on the market by all sellers.

Market demand is the total volume of purchases that all buyers in the market are willing to make at a given price level.

Savings are the remainder of income after paying all expenses associated with current consumption.

The velocity of money circulation is the number of times each monetary unit participated during the year in securing any transactions.

Market weaknesses (imperfections) are the inability of market mechanisms to solve some economic problems at all or in the best possible way.

A mixed economic system is a way of organizing economic life in which land and capital are predominantly privately owned, and the distribution of limited resources is carried out both by markets and with significant government participation.

Equity capital is money that is provided to a company in exchange for the right to co-own its property and income, and therefore, as a rule, is not subject to return and generates income depending on the results of the company’s work.

Aggregate supply is the total quantity of final goods and services that firms in a country can and are willing to offer to the market over a certain period of time at: 1) the prevailing price level in the country; 2) existing technology and 3) available resources of all types.

Aggregate demand is the total quantity of final goods and services of all types that all buyers in a country are willing to purchase over a certain period of time at the current price level.

Specialization is the concentration of a certain type of activity in the hands of a certain person or business organization.

Demand is the dependence that has developed over a certain period of time of the magnitude of demand in a given commodity market on the prices at which goods can be offered for sale.

Wage rate is the amount of money paid to an employee for labor services provided during a certain period of time (hour, shift or month) or necessary to perform a certain amount of work (for example, the manufacture of one part).

The cost of living is the amount of money that it costs to purchase, over a certain period of time (usually a month), a standard set of goods and services for most families in a given country.

“Shadow economy” is an economic activity carried out in such a way as to avoid paying taxes to the state.

Customs duty is a tax levied in favor of the state treasury from the owner of a foreign-made product when importing this product into the country for sale.

Current (perpetual) deposits are funds transferred by their owners for temporary storage to the bank, granting it the right to use this money for lending and retaining the owner of the funds the right to withdraw this money from the bank at any time without prior notice.

A product is a material item that is useful to people and therefore valued by them as a benefit.

Trade margin is a premium established by a trade organization to the price at which the product is sold by the manufacturer.

Trade is a voluntary and mutually beneficial exchange of the results of specialized production of goods.

A traditional economic system is a way of organizing economic life in which land is held in common by the tribe and scarce resources are distributed according to long-standing traditions.

Transactional (organizational and contractual) costs - the expenditure of time, effort and money on finding a supplier of resources or services, concluding an agreement with him on prices and other terms of the transaction, and monitoring that it is completed.

Transfer is a sum of money transferred by the state to the poorest citizens to improve their standard of living and formed from funds seized through taxes from wealthier citizens.

Labor is the use of people's mental and physical abilities to carry out work related to the production of economic goods.

The burden of work is a measure of the physical and nervous complexity and tediousness of performing professional duties.

A service is an intangible benefit that takes the form of an activity useful to people.

Factors of production are resources used by people to create the goods of life.

Physical capital - buildings, structures, machines, reclamation systems used to transform natural substances with the help of technology into benefits useful to people.

A financial intermediary is an organization that provides services to citizens and firms, helping the former to place their savings with the greatest benefit, and the latter to obtain additional funds with minimal effort.

Financial market is a market in which funds necessary for the acquisition of physical capital of firms are sold and purchased.

Company finances - the relationship between cash expenses and cash receipts of the company.

A company is an economic organization created specifically to produce goods and sell them on the market in order to make a profit for its owners.

The price of choice (opportunity costs) is the value of the most preferable of the benefits, the acquisition of which becomes impossible with the chosen method of using limited resources.

The price of money capital is the amount of income (interest) that a company must provide to the owners of savings so that they agree to provide it with these savings for the implementation of commercial projects.

A security is a document that can be bought or sold due to the fact that it certifies the rights of its owner to part of the property and income of the organization that issued this security.

Fractional reserve is the proportion of deposits made to a bank that it must and can constantly have at its disposal in order to be able to fulfill its obligations to depositors under normal operating conditions.

Human needs are the range and volume of goods that people would like to receive to satisfy their needs if these goods were available free of charge and without restrictions.

Human capital is the knowledge and skills accumulated by a person as a result of training and previous work activity and influencing his employability and the level of salary received.

Net profit is the part of profit remaining at the disposal of a business organization after paying taxes and other obligatory payments.

Economy - 1) the activities of people aimed at creating the goods they need; 2) a science that studies the behavior of people in the process of creating, exchanging and consuming the goods they need.

Economic profit is the difference between sales revenue and economic costs.

Economic efficiency is a method of organizing production in which the costs of producing a certain amount of products are minimal.

Economic systems are forms of organizing the economic life of society, differing in: 1) the method of coordinating the economic activities of people, firms and the state and 2) the type of ownership of economic resources.

Economic growth is a sustainable increase in the country's production capabilities.

An economic cycle is a period of time during which a country's economy goes through two main phases: boom and bust.

Export is the sale to residents of other countries of goods produced by sectors of the domestic economy.

Price elasticity of supply is the scale of change in the quantity of supply (in %) when the price changes by one percent.

Price elasticity of demand is the scale of change in the quantity of demand (in %) when the price changes by one percent.

An issuing bank is a bank that has the right to issue (issue) national monetary units and regulate monetary circulation in the country.

Money issue is the issue by the state of an additional number of banknotes.

Income effect - when the price decreases (or income increases), the product becomes cheaper in relation to a person’s total income and therefore the buyer is able to purchase this product in larger quantities without giving up his other usual purchases. And vice versa.

Economies of scale are a situation when a firm has the ability to increase the volume of its output to a greater extent than the volume of all resources it uses increases.

DICTIONARY

ECONOMIC TERMS

Automation of production is the replacement by machines and mechanisms of not only manual physical labor, but also the labor functions of controlling machines and mechanisms. Workers perform only the functions of setting up and configuring machines and monitoring work.

Joint-stock company - 1) a company that is a legal entity, the capital of which consists of contributions from shareholders and founders; 2) a form of organizing production based on raising funds through the sale of shares. There are closed and open joint stock companies.

A closed joint stock company is a company in which shares are sold only to its employees and cannot be sold to outsiders without the consent of other shareholders.

An open joint stock company is a company in which capital is formed through the open sale of shares.

Share capital is the fixed capital of a joint stock company, the size of which is determined by its charter. It is formed through borrowed funds and the issue (issue) of shares.

A share is a security issued by a joint-stock company, giving the right to its owner, a member of the joint-stock company, to participate in its management and receive dividends from profits.

There are shares: ordinary, preferred, registered, bearer, labor collective, enterprise, etc.

Nominal share - share indicating its owner. Distributed by open subscription. It can be simple and privileged.

Bearer share - a share that does not contain the name of its holder. It can be simple and privileged.

Ordinary share - a share with a non-fixed dividend, the amount of which is determined by the general meeting of shareholders after payment of a fixed percentage to holders of preferred shares.

Company shares - shares distributed among other enterprises and organizations, cooperatives, banks, voluntary societies.

Preferred share - a share whose dividend is fixed in the form of a fixed percentage, paid on a priority basis, regardless of the company’s profit. This share does not give voting rights, its owner does not participate in the management of the company.

Action of the labor collective- a share, the holders of which can only be employees of a given team.

Depreciation funds are financial funds allocated for a special purpose to preserve and renew fixed assets of an enterprise.

The sinking fund is money intended for simple and expanded reproduction of fixed assets.

Depreciation - 1) the gradual transfer of the value of fixed assets to the product or service produced with their help; 2) targeted accumulation of funds and their subsequent use to compensate for worn-out fixed assets.

Lease is a property lease based on an agreement on the provision of property for temporary use for a certain fee.

Product certification is a set of organizational, technical and economic measures that provide for the systematic implementation of an objective assessment of technical and economic indicators of product quality.

Balance is a system of indicators that characterize a phenomenon by comparing or contrasting its individual aspects. Economic balance sheets are usually compiled in monetary terms.

Balance sheet profit is the total amount of profit of an enterprise for all types of activities, reflected in its balance sheet.

Bankruptcy is a concept meaning ruin, the refusal of an enterprise (organization, bank) to pay its debt obligations due to lack of funds. As a rule, it leads to the closure or forced liquidation of the enterprise, the sale of property to pay off all debts.

Unemployment is a socio-economic phenomenon in which part of the able-bodied population willing to work cannot find work, becoming a reserve army of labor.

Business is the economic activity of a subject in a market economy, aimed at making a profit through the creation and sale of certain products or services.

A businessman is a merchant, an entrepreneur engaged in any type of economic activity that brings profit or other benefits.

A business plan is a program of an enterprise’s activities, a plan of specific measures to achieve specific goals of the company’s activities, including an assessment of expected expenses and income. Developed on the basis of marketing research (see Marketing).

Gross revenue is the total amount of cash receipts from the sale of commercial products, works, services and material assets.

Gross profit is the part of the enterprise's gross income that remains with it after deducting all mandatory expenses.

Gross income is the final result of an enterprise’s activities, which is the difference between gross revenue and all costs of production and sales of products.

A bill of exchange is a type of security, a written promissory note of an established form, giving its owner (the holder of the bill) the unconditional right to demand from the drawer the unconditional payment of a specified amount of money by a certain date.

A venture capital firm is a commercial scientific and technical company engaged in the development and implementation of new technologies and products with an income that is uncertain in advance (a risky investment of capital).

An innovation company is an intermediary and consulting self-supporting organization (enterprise) specializing in the dissemination of innovations.

GOST RF - State standardization system of the Russian Federation.

Diversification of production is a transition from a one-sided, often based only on the production of one product, production structure to multi-industry production with a wide range of products.

Dividend is part of the profit of a joint stock company, distributed annually among shareholders after paying taxes, deductions for expansion of production, replenishment of reserves, payment of interest on bonds and remuneration to directors.

The product life cycle is a period of alternating five different life phases of a product: development, production, market entry, market saturation and obsolescence.

Costs of production and sales of products - the valuation of natural resources, raw materials, materials, fuel, energy, fixed assets, labor resources used in the production process of products, as well as other costs of production and sales of products.

Depreciation of fixed assets is the gradual loss of fixed assets (buildings, machines and other means of labor) of their useful properties. There are differences between physical and moral wear and tear of fixed production assets. Physical deterioration - material wear and tear of means of labor as a result of their use and the influence of natural forces. Obsolescence means of labor may reach complete physical wear and tear due to the emergence of more productive, accurate and economical machines and equipment.

Inventions are new and significantly different technical solutions to problems in any area of ​​the economy, social and cultural construction, which give a positive effect.

Investments are long-term investments of funds both within the country and abroad in order to create new and modernize old enterprises, master the latest technologies and equipment, increase production and make profits.

Investment policy is the determination of the highest priority areas of capital investment, on which increasing the efficiency of the economy depends, ensuring the greatest increase in production and national income for every ruble of expenditure.

An investor is a private entrepreneur, organization or state making a long-term investment of capital in a business or enterprise in order to make a profit.

Engineering - provision on a commercial basis (in the form of a contract) of various engineering and consulting services.

Innovation is an innovation, a complex process of creating, disseminating and using innovations (a new practical means) to meet human needs that change under the influence of the development of society.

Infrastructure is a complex of economic sectors serving industrial (or any other) production, as well as the population. Includes transport, communications, trade, logistics, science, education, healthcare.

Capital intensity is an indicator characterizing the ratio of fixed capital to the product or part of it produced in the corresponding period - national income, net income, profit.

Capital construction is the process of creating and improving fixed assets through the construction of new ones, reconstruction, expansion, technical re-equipment and modernization of existing ones.

Capital investments are expenses of material, labor and monetary resources aimed at the restoration and growth of fixed assets.

Product quality is a set of useful consumer properties of a labor product that determine its ability to satisfy certain needs of man and society.

Combination is one of the forms of socialization of production, which consists in the technological combination of interconnected heterogeneous industries in one or different industries within the framework of one enterprise - a plant.

A commercial secret of an enterprise is information that is not state secrets and is related to production, technological information, financial management and other activities of the enterprise, the disclosure of which may harm its interests.

Company is an association of entrepreneurs formed on the basis of share capital and is a legal entity: joint-stock company, limited liability company, etc.

Integrated mechanization and automation of production - mechanization and automation of not only the main, but also auxiliary production processes.

Conversion is the reorientation of an enterprise to produce products of a fundamentally different type.

Competitiveness is the ability of an enterprise to carry out its activities in market conditions and at the same time receive a profit sufficient for the scientific and technical improvement of production, stimulating employees and maintaining products at a high quality level.

Competition is an element of the market mechanism associated with the formation of economic proportions based on the rivalry of enterprises and firms for better and more favorable conditions for the investment of capital, the sale of products and services.

Contract - see Employment contract.

Contractual remuneration system is the conclusion of an employment contract between the employer and the contractor, which stipulates working conditions, rights and obligations of the parties, working hours and level of remuneration, and the duration of the contract.

A controlling stake is a share of the total value (number) of shares, allowing their owners to control the activities of the entire joint-stock company. Theoretically, this share is determined at 51% of the total amount of shares, in practice - much less.

Concentration of production - concentration of production at large enterprises.

The concern is an association of independent enterprises from various industries connected by joint developments through a system of participation, patent and licensing agreements, financing, and close production cooperation.

Cooperation is the process of establishing direct long-term economic ties for the joint production of the final product.

Material utilization rate is an indicator characterizing the rational use of raw materials and materials. It is calculated as the ratio of the amount of materials included in the finished product to the total processed amount.

Shift coefficient is an indicator of the degree of equipment utilization over time. It is defined as the ratio of machine shifts worked per day to all installed equipment.

Leasing - 1) a method of financing investments based on long-term lease of property while retaining ownership rights to the lessor; 2) medium- and long-term rental of machinery, equipment and vehicles.

Marketing is a comprehensive system for managing the activities of an enterprise in the development, production and marketing of products or provision of services based on market research and active influence on consumer demand.

Material intensity of products is the cost of raw materials, supplies and other material resources per unit of production. Reducing material consumption makes it possible to obtain more finished products from the same material resources, reducing its cost and the costs of developing raw materials industries.

Equipment modernization is the introduction of existing changes into the design of existing equipment that increase its technological level and improve technical and economic characteristics.

A monopolist is the only producer of a particular product who charges a monopolistically high price for that product, resulting in increased costs for consumers and society.

Overhead costs are expenses for the maintenance of production and enterprise management, which are additional to the main costs and, along with them, are included in production costs.

Scientific and technical potential is a generalized characteristic of the level of development of science, engineering, technology in the country, the capabilities and resources that society has to solve scientific and technical problems.

Scientific and technological progress is the process of continuous development of science, technology, technology, improvement of objects of labor, forms and methods of organizing production and labor.

Scientific and technological preparation of production is a complex of normative and technological measures regulating the design, technological preparation of production and the system of putting products into production.

Working capital turnover is the movement of working capital of an enterprise, a sequential transition from one form to another. The faster a company's working capital turns over, the more products it can produce with the same amount of working capital. Accelerating the turnover of working capital is achieved by strictly observing production inventory standards, shortening the production cycle, and faster sales of finished products.

Working capital assets are objects of labor used in production (raw materials, materials, fuel, containers, spare parts for repairs, etc.). They are completely consumed in each production cycle and are purchased from the working capital of the enterprise.

Working capital is the funds of an enterprise expressed in monetary form, invested in inventories, work in progress, finished products, costs of developing new products, and deferred expenses.

A company with additional liability is a company that is established by one or more persons. Its participants jointly and severally bear subsidiary liability for the obligations of the company with their property in the same multiple of the value of their contributions, determined by the constituent documents.

A limited liability company is a company that is established by one or more persons. Its authorized capital is divided into shares of sizes determined by the constituent documents. Participants are not liable for the obligations of the company and bear the risk of losses associated with its activities, within the limits of the value of the contributions they made.

The general cycle of capital construction of an object is the time from the beginning of the design of the object to its commissioning.

Return on capital investments is an indicator of the effectiveness of capital investments, defined as the ratio of capital investments to the economic effect obtained from their use in the production process.

The optimal size of an enterprise is the size of an enterprise that ensures the fulfillment of concluded contracts and obligations to produce products (perform work) on time with a minimum of reduced costs and the highest possible efficiency.

Fixed non-productive assets are durable items that serve non-productive consumption in society. These include residential buildings, clinics, clubs, sanatoriums, stadiums, etc., which are on the balance sheet of the enterprise.

Fixed production assets are means of labor (buildings, structures, machinery and equipment, vehicles, etc.) with the help of which products are manufactured. They serve for a long time, retain their natural shape during the production process and transfer their value to the finished product in parts as they wear out. Replenished through capital investments.

An indicator is a generalized quantitative parameter of socio-economic phenomena and processes in unity with their qualitative characteristics.

A general partnership is an association of two or more persons to carry out business activities for the purpose of making a profit, the members of which participate in the affairs of the partnership personally and bear full financial responsibility not only for the invested capital, but also for all their property.

Marginal labor productivity is the increase in the volume of output caused by the use of an additional unit of labor with other conditions fixed.

An enterprise is an independent economic entity, which is a legal entity and created to produce products, perform work and provide services in order to meet public needs and make a profit.

Profit is the final financial result of an enterprise's activities. Defined as the difference between revenue and costs.

Privatization is the process of changing property relations during the transfer of a state-owned enterprise to other forms of ownership, including collective, joint-stock and private.

Forecasting is a scientifically based prediction of the probabilistic development of events or phenomena for the future based on statistical, social, economic and other studies.

Labor productivity is the productivity of people's production activities. It is measured by the amount of products produced by a worker in the field of material production per unit of working time, or the amount of time spent on producing a unit of output. Social productivity of labor is expressed in the amount of national income produced per one employed worker in sectors of material production.

Production capacity is the maximum possible output of products with the most complete and rational use of fixed production and working capital, as well as financial resources.

The production structure is a set of connections between the production divisions of an enterprise - workshops, sections, service facilities and services directly or indirectly involved in the production process.

Production is the process of creating material goods necessary for the existence and development of society.

Reconstruction is the process of radical reconstruction of existing production on the basis of technical and organizational improvement, comprehensive renewal and modernization of fixed assets.

Product profitability is an indicator of production efficiency, defined as the ratio of total (balance sheet) profit to the average annual cost of fixed production assets and standardized working capital.

A free economic zone is a part of the state’s territory that has a free regime for investing foreign capital and simplified customs rules.

Piece rate - the amount of wages per unit of product or work.

Certificate is a document certifying the quality of a product, issued by competent authorities based on an examination of the product.

Certificate of Conformity is a document issued by a third party demonstrating that a properly identified product, process or service conforms to a specific standard or other regulatory document.

Product certification is a procedure for the adoption and implementation of international standards for the assessment and control of product quality. Osu-

is implemented through the creation of special centers independent of manufacturers, equipped with equipment and instruments to control products for compliance with international standards.

A product quality management system is an organizational structure that clearly distributes responsibilities, procedures, processes and resources necessary to manage product quality.

Joint entrepreneurship is a form of production activity of enterprises from two or more countries, focused on cooperation in the sphere of production and circulation.

Specialization of production - concentration of production of structurally and technologically homogeneous products for mass consumption at large enterprises.

A standard is a regulatory and technical document that establishes norms, rules and requirements for the development, manufacture and operation of products (see. GOST RF).

Standardization is the establishment and application of rules in order to streamline activities in a certain area for the benefit and with the participation of all interested parties. It is reflected in regulatory documents, standards, instructions, methods, and requirements for product development.

The technical level of a product is a relative characteristic of product quality, based on a comparison of the values ​​of indicators that determine the technical perfection of the product under evaluation with the values ​​of the corresponding basic indicators.

Technical re-equipment is the process of raising the technical level of individual production areas to the modern level.

The type of production organization is a comprehensive description of the characteristics of the organization and the technical level of production.

Limited partnership (limited partnership) - an association of two or more persons to carry out entrepreneurial activities, in which some participants (general partners) are responsible for the affairs of the partnership both with their contribution and all their property, and others (limited partners) are responsible only with their contribution .

A limited liability partnership is an association of citizens and/or legal entities for joint economic activities, the authorized capital of which is formed from the contributions of the founders, who are liable for obligations only with their contribution.

An employment contract is an agreement between an entrepreneur and a person entering work, which stipulates his labor functions, place of work, job responsibilities, wages, start time, etc.

The labor intensity of a product is a value inversely proportional to the productivity of living labor. It is defined as the ratio of the amount of labor expended in the sphere of material production to the volume of products produced.

Unification in industry is the reduction of a variety of products to structurally and technically improved uniformity.

The charter is an official document confirming the legality of the establishment of the company, containing the nature and rules of its activities, the basis of relationships between members, etc.

Constituent documents are documents that serve as the basis for the establishment of a newly created enterprise, company, joint stock company and their registration in the prescribed manner.

A company is an enterprise or a set of specialized organizations of any form of ownership, which are legal entities and united under one management (and a common company name) for the production and sale of goods.

Capital-labor ratio is an indicator of the availability of fixed production assets (the size of fixed production assets per employee or worker of an enterprise).

Capital intensity is an indicator inversely proportional to capital productivity. It is calculated as the ratio of the average cost of fixed production assets to the volume of production.

Capital productivity is an indicator characterizing the number of products per 1 ruble. fixed production assets. Increasing capital productivity is the most important area for better use of fixed production assets.

Working day photography is a method of studying working time by observing and measuring its duration during all or part of the working day.

A franchisor is a large enterprise (corporation, firm, etc.) that enters into a franchising agreement with a franchisee.

A franchisee is a small enterprise that enters into transactions with a large enterprise - the franchisor.

Chemicalization of production is the process of widespread use of chemical products and synthetic materials, as well as chemical methods in the production of products.

A holding company is a joint stock company that uses its capital to acquire controlling stakes in other companies for the purpose of managing, directing them and receiving dividends.

In everyday life, a modern person who wants to be financially literate has to know and use economic terms. What is it for? For example, you come to a bank where you sign a loan agreement - knowing the basic concepts will help you avoid deception and misunderstandings, allow you to know in advance all the aspects of the upcoming cooperation and save your budget. Economic terms and concepts and their definitions are presented not as in textbooks, but in a form accessible to every person.

Financial terms and definitions that are useful in everyday life

If you work, go shopping, save money, rent a house, these terms will be useful:

• Advance is part of the salary that is provided to the employee, usually at the end of the month. It is used taking into account the fact that according to the law in the Russian Federation, salaries are paid twice a month;
• Excise tax is a tax paid indirectly. For example, with tobacco, alcohol products, fuel prices. Most of the cost comes from excise taxes;
• – a tax paid on the income of an individual. The rate is 13%; wages, benefits from the sale of property and any funds received by the citizen are taxed;
• – an indirect tax that the consumer pays in stores and when purchasing goods. So, buying a chocolate bar for 100 rubles, you contribute 18 of them to the budget. Depending on the policy of the outlet, the rate may be different;
• Net – weight without packaging material;
• Inflation is a depreciation of the currency; in Russia in 2017 the ruble fell by almost 3%, but the real rate is many times higher.

Financial terms and definitions, of course, do not need to be taught verbatim, you just need to understand their essence.

Terms and definitions for a novice businessman

If you decide to open your own company or are just looking at the business area, these terms will be useful:

• – a security that allows you to receive part of the enterprise’s income and take part in management;
• Depreciation is a recalculation of the cost of worn-out property. For example, you are using a machine whose service life is 10 years. During this time, you need to deduct its cost in equal payments to the depreciation fund, so that if it breaks down, you can buy a new one;
• Product range – a list of products manufactured by the company;
• Bankruptcy - the ruin of a company, the procedure for recognizing a company unable to pay its bills is carried out through the court;
• Accounts receivable is the debt of counterparties to you. Imagine you supply meat products to stores on a deferred payment basis - payment occurs within a week from the date of shipment. All this time, accounts receivable will remain;
• Personnel of the company - the staff of workers employed at the enterprise;
• Crowdfunding is the collective financing of a project, mainly through the Internet. The author comes up with a proposal, a unique idea, all interested parties can invest and make a profit in the future;
• Bidding is a form of procurement in which a competition is announced and the best company is selected. For example, the state organizes tenders to find a contractor for the construction of a federal highway;
• Net profit is the company’s income after deducting taxes, wages, rent, and other expenses.

It is not necessary for an entrepreneur to know the terms, since today accounting and financial services are provided in every city. Beginners can turn to the pros for help.

Terms used by banks and credit institutions

Concepts that are used when lending, opening deposits, and collaborating with banks will help every person understand this industry:

• Annuity payment – ​​the debt amount is paid evenly over the loan term. Used more often for loans, mortgages;
• BKI is a bureau where credit histories are stored. You can go here and get your own loan history;
• Differentiated payment - interest is charged only on the balance of the debt, the amount will decrease monthly. Used more often for credit cards;
• with state support - provided at a reduced rate for the military, teachers, young families and other categories of borrowers. Part of the interest is financed by the state;
• Credit history is a list of all loans taken and the payment history of a particular borrower. Based on the CI, the bank decides whether to satisfy the application or not;
• – bonus program, when part of spending on cards is returned in the form of bonuses;
• – rental of property, for example, a car. At the end of the contract, the property can be purchased at its residual value.
• – obtaining a loan for a loan in order to reduce/increase the payment period, reduce the amount of payment, overpayment.

However, there are other terms that may be useful. Before you sign a contract with unclear words, you need to find out what they mean.

Macroeconomic terms - learn about the country's finances

It would seem, why do we need to know about the processes taking place in the country? In fact, they also concern us – ordinary citizens, so the terms will not be superfluous:

• Government revenues are funds received by the budget. Sources include taxes, loans, issue of currency and securities;
• – depreciation of the currency against gold;
• – the country’s failure to fulfill its obligations, for example, non-payment of debt, refusal to pay on bonds;
• Subsidies are funds provided to the budget of constituent entities of the Russian Federation or municipalities to finance current expenses. For example, a region plans to build a bridge, and the state issues money for this purpose;
• The discount rate is the interest rate at which the Central Bank issues loans to other banks in the country.

The number of definitions used at the state level is, of course, wider; processes related to finance, both external and internal, take place here. Taxes, the credit system, business, and the main aspects of human activity are regulated.

Studying economic terms and their definitions is an opportunity to improve financial literacy and better understand many processes. However, their number is so impressive that it is not possible to consider all the concepts in one article. For the purpose of self-education, it is recommended to find out the meaning of terms that you come across in everyday life.

Aval

A bill of exchange guarantee in respect of which bill of exchange law is applied. This guarantee means a guarantee of full or partial payment of the draft if the debtor fails to fulfill his obligations on time. The aval is given on the front side of the bill and is expressed by the words: “Count as aval” or any other similar phrase and is signed by the avalist. Aval is given for any person responsible for the bill, so the avalist must indicate for whom he gives guarantee. In the absence of such an indication, the aval is considered to be issued to the drawer, i.e. not for the debtor, but for the creditor. The avalist and the person for whom he vouches are jointly and severally liable. Having paid the bill, the avalist acquires the right of recourse to the person for whom he issued the guarantee, as well as to those who are obliged to this person.

Prepaid expense

A sum of money issued against upcoming payments for material assets, work performed and services rendered.

Advice

In banking, commercial, accounting practice - a notice sent by one counterparty to another about changes in the state of mutual settlements or about the transfer of funds or the sending of goods. An advice note, as a document, has a legal nature.

Assets

Property of enterprises, which includes fixed assets, other long-term investments (including intangible assets), working capital, financial assets.

Acceptance

The agreement of the obligated person to pay the payment request and thus make settlements with the product supplier as provided for in the contract. The acceptance form of payment involves the presentation for payment for the supplied products of a payment request issued by the supplier of the goods.

Excise tax

An indirect tax included in the price of a product and paid by the buyer. The law of the Russian Federation establishes the procedure for imposing excise taxes on sold wine and vodka products, ethyl alcohol and food raw materials (except for those sold for the production of alcoholic beverages and wine products, beer, tobacco products, tires, cars, trucks with a carrying capacity of up to 1.25 tons, jewelry, diamonds, crystal products, carpets and rugs, fur products, as well as clothing made of genuine leather).

Stock

Securities issued by joint-stock companies and indicating the share of the owner (holder) in the capital of this company, giving their owner the right to receive profit in the form of a dividend, and also, depending on the type, capable of giving the right to vote at the general meeting of shareholders (simple registered) . This type of equity securities is not issued by government agencies; they are issued only by industrial, commercial and financial corporations. The price at which a share is sold on the market is called the share price.

Auditing activities

Activities of independent non-departmental financial control. Audit (independent financial control) is carried out by specialized audit firms and services. Audit firms provide control and consulting services to all enterprises and organizations on a paid basis. Audit firms are independent organizations designed to help improve the quality of control and its objectivity.

Correspondent banks

Banks that, on the basis of a correspondent agreement, carry out each other’s orders for payments and settlements through specially opened accounts or through accounts of correspondent banks in a third bank.

Bank guarantee

A written obligation given by a bank or other credit institution, or an insurance organization (guarantor), at the request of another person (principal), to pay the principal's creditor (beneficiary), in accordance with the terms of the obligation given by the guarantor, a sum of money upon presentation by the beneficiary of a written demand for its payment. The bank guarantee ensures the proper fulfillment by the principal of his obligation to the beneficiary (principal obligation). For issuing a bank guarantee, the principal pays a fee to the guarantor. The bank guarantee comes into force from the date of its issue, unless otherwise provided in the guarantee. The obligation of the guarantor to the beneficiary provided for by a bank guarantee does not depend in the relations between them on the main obligation to secure the fulfillment of which it was issued, even if the guarantee contains a reference to this obligation.

Bank transfer

An order from one person (the transferor) to the bank to transfer a certain amount in favor of another person (the transferee). The bank that has accepted the transfer order executes it through its correspondent.

Bankruptcy

The debtor’s inability to satisfy creditors’ demands for payment for goods (works, services), including the inability to ensure mandatory payments to the budget and extra-budgetary funds.

Barter deal

A non-currency, but valued and balanced exchange of goods, formalized by a single agreement (contract).

Cashless payments

Settlements between organizations made by the bank transferring the amount from the account of the debtor organization to the account of the creditor organization according to payment documents in a non-cash manner. Payments can be made with the consent (acceptance) of the payer and on his instructions.

Commodity exchange

A commercial enterprise, a regularly functioning market for homogeneous goods with certain characteristics.

Stock exchange

An organized and regularly functioning market for the purchase and sale of securities. The main functions of the stock exchange are the mobilization of temporarily free funds through the sale of securities and the establishment of the market value of securities.

Budget

The form of formation and expenditure of a fund of funds intended for financial support of the tasks and functions of the state and local government; an economic category represented by monetary relations that arise between the state and legal entities and individuals regarding the redistribution of national income in connection with the formation and use of the country's budget fund intended to finance the national economy, socio-cultural needs, defense needs and public administration.

Consolidated budget

Compilation of budgets of all levels of the budget system of the Russian Federation in the relevant territory.

Budget deficit

The excess of budget expenditures over its revenues.

Budget revenues

Funds received free of charge and irrevocably in accordance with the legislation of the Russian Federation at the disposal of state authorities of the Russian Federation, state authorities of constituent entities of the Russian Federation and local governments.

Budget surplus

The excess of budget revenues over its expenses.

Budget expenses

Funds allocated to financially support the tasks and functions of the state and local government.

Budget list

A document on the quarterly distribution of budget income and expenses and receipts from sources of financing the budget deficit, establishing the distribution of budget allocations between recipients of budget funds and compiled in accordance with the budget classification of the Russian Federation.

Budget system

Based on economic relations and legal norms, the totality of all types of budgets in the country that have relationships established by law with each other. The unity of the budget system is based on the interaction of budgets at all levels, carried out through the use of regulatory revenue sources, the creation of target and regional budget funds, and their partial redistribution. This unity is realized through a unified socio-economic, including tax, policy.

Budget system of the Russian Federation

Based on economic relations and the state structure of the Russian Federation, regulated by the rules of law, the totality of the federal budget, budgets of the constituent entities of the Russian Federation, local budgets and budgets of state extra-budgetary funds.

Budget loan

Budget funds provided to another budget on a repayable, gratuitous or reimbursable basis for a period of no more than six months within a financial year.

Budget structure

Based on economic relations and legal norms, the totality of all types of budgets in the country. The main document in building the budget system is the Constitution of the Russian Federation.

Budget law of the Russian Federation

A set of legal norms (mandatory rules of conduct) delimiting the scope of various budgets (for example, regional, regional, city, district, rural, township), defining the powers of individual government bodies in issuing a budget law, regulating the procedure for the preparation and implementation of this law.

Budget regulation

A system of redistribution of funds, consisting in the transfer of part of the resources of a higher budget to a lower one for the purpose of balance. The regulatory mechanism includes: subsidies; subventions; regulating income sources. Budget regulation is an integral part of the budget process.

Budget device

The set of principles on which the organization of the budget system is based.

Budget allocations

Budget funds provided for by the budget schedule to the recipient or manager of budget funds.

Budget loan

A form of financing budget expenditures, which provides for the provision of funds to legal entities on a repayable and reimbursable basis.

Budget process

The activities of state authorities, local self-government bodies and participants in the budget process, regulated by legal norms, in the preparation and consideration of draft budgets, draft budgets of state extra-budgetary funds, approval and execution of budgets and budgets of state extra-budgetary funds, as well as monitoring their implementation.

Currency

A monetary unit used to measure the value of goods, the concept of “currency” is used in the following meanings: the monetary unit of a given country (US dollar, Japanese yen), banknotes of foreign countries, as well as credit and means of payment used in international payments, and international ( regional) monetary unit of account and means of payment (transferable ruble, EURO).

Freely convertible currency

A currency that can be freely and unrestrictedly exchanged for other foreign currencies.

Currency payments

A system for organizing and regulating payments for monetary claims and obligations in foreign currency arising during the implementation of foreign economic activity. Payments can be made in cash or on credit, i.e. with installment payment. Cash payment represents full payment for the goods before the due date or at the moment the goods or documents of title are transferred to the buyer’s disposal. Payment on credit or payment by installments has two forms: commercial credit (loan from the exporter to the importer) and advances from the importer to the exporter.

Exchange rate

The price of a monetary unit of a given national currency, expressed in monetary units of another country's currency.

Bill of exchange

A security certifying the unconditional obligation of the drawer (promissory note) or another payer specified in the bill of exchange (bill of exchange) to repay the borrowed sums of money upon the maturity of the bill of exchange; the relations of the parties to the bill of exchange are regulated by the law on bills of exchange and promissory notes. The Law of the Russian Federation “On the monetary system of the Russian Federation” (Article 13) considers a bill of exchange to be a payment document used in non-cash payments. Russia adheres to the Uniform Bill of Exchange Law, adopted in 1930 in Geneva.

Bill of exchange credit

A loan issued by issuing a bill of exchange to the importer, who accepts it upon receipt of shipping and payment documents.

Off-budget funds

A specific form of redistribution and use of financial resources attracted to finance certain public needs and used comprehensively on the basis of the organizational independence of funds.

Government loans

Credit relations between the state and legal entities and individuals, as a result of which the state receives certain amounts of money for a certain period for a certain fee, are carried out in the form of the sale of government securities, loans from extra-budgetary funds and in the procedure of obtaining loans from banks.

Government spending

Part of the financial relations, which is determined by the use of state revenues in connection with the implementation of its functions: security; defense; foreign economic relations; social; managerial.

Public finance

Monetary relations regarding the distribution and redistribution of the value of the social product and part of the national wealth, associated with the formation of financial resources at the disposal of the state and its enterprises and the use of public funds for the costs of expanding production, meeting the socio-cultural needs of society, the needs of defense and management. State budget revenues consist of many sources and revenues. The totality of all types of state revenues, which is formed by various methods, constitutes the state revenue system.

State extra-budgetary fund

The form of formation and expenditure of funds generated outside the federal budget and the budgets of the constituent entities of the Russian Federation.

State loan

Monetary relations arising between the state and legal entities and individuals in connection with the mobilization of temporarily free funds at the disposal of public authorities and their use to finance public expenditures.

Devaluation

Decrease in the exchange rate of a national or international (regional) currency in relation to the currencies of another country. Very often, devaluation reflects the depreciation of foreign currency as a result of inflation.

Denomination

Enlargement of the national monetary unit by exchanging old banknotes for new ones according to an established ratio in order to streamline monetary circulation, facilitate accounting and settlements in the country with simultaneous recalculation (in the same ratio) of prices, tariffs, wages, etc.

Depository

An organization conducting depository activities.

Depository activities

Providing services for storage (deposit) of securities, as well as “service of securities”, i.e. execution of the depositor's instructions to exercise the rights certified by the securities.

Deport

An exchange transaction for a period concluded on a stock exchange in the expectation of a decrease in the price of securities in order to obtain an exchange rate difference.

Deflation

Withdrawal by the state from circulation of part of the circulating surplus funds in order to reduce inflation.

Bank deposit agreement

An agreement under which one party (the bank), having accepted a sum of money (deposit) received from the other party (depositor) or received for it, undertakes to return the deposit amount and pay interest on it under the conditions and in the manner prescribed by the agreement. A bank deposit agreement in which the depositor is a citizen is recognized as a public contract. The rules on the bank account agreement apply to the relationship between the bank and the depositor on the account to which the deposit is made, unless otherwise provided by the rules of this chapter or follows from the essence of the bank deposit agreement.

Bank account agreement

An agreement under which the bank undertakes to accept and credit funds received to the account opened for the client (account owner), carry out the client’s orders to transfer and withdraw the corresponding amounts from the account and carry out other operations on the account. The bank can use the funds available in the account, guaranteeing the client’s right to freely dispose of these funds. The bank does not have the right to determine and control the direction of use of the client’s funds and establish other restrictions on his right to dispose of funds at his own discretion not provided for by law or the bank account agreement.

State loan agreement

An agreement under which the borrower is the Russian Federation, a constituent entity of the Russian Federation, and the lender is a citizen or legal entity. Government loans are voluntary. A government loan agreement is concluded through the acquisition by the lender of issued government bonds or other government securities, certifying the lender’s right to receive from the borrower the funds loaned to him or, depending on the terms of the loan, other property, established interest or other property rights within the time limits provided for by the conditions issuing a loan into circulation. Changing the terms of a loan issued in circulation is not allowed. The rules on public loan agreements apply accordingly to loans issued by a municipality.

Loan agreement

An agreement under which one party (the lender) transfers into the ownership of the other party (the borrower) money or other things determined by generic characteristics, and the borrower undertakes to return to the lender the same amount of money (loan amount) or an equal number of other things of the same kind received by him and quality. The loan agreement is considered concluded from the moment the money or other things are transferred. A loan agreement between citizens must be concluded in writing if its amount exceeds at least ten times the minimum wage established by law, and in the case where the lender is a legal entity - regardless of the amount. In confirmation of the loan agreement and its terms, a receipt from the borrower or another document certifying the transfer by the lender of a certain amount of money or a certain number of things to him may be presented.

Surety agreement

An agreement under which the guarantor undertakes to be responsible to the creditor of another person for the latter’s fulfillment of his obligation in whole or in part. A surety agreement can also be concluded to secure an obligation that will arise in the future. The guarantee agreement must be concluded in writing. Failure to comply with the written form entails the invalidity of the guarantee agreement. In case of non-fulfillment or improper fulfillment by the debtor of the obligation secured by the guarantee, the guarantor and the debtor are jointly and severally liable to the creditor, unless the law or the guarantee agreement provides for the subsidiary liability of the guarantor.

Public external debt

Debt obligations of the Government of the Russian Federation to foreign states or international organizations, expressed in foreign currency.

State domestic debt

Debt obligations of the Government of the Russian Federation, expressed in the currency of the Russian Federation, to legal entities and individuals, unless otherwise established by regulations of the Russian Federation. Legal forms of debt obligations are loans received by the government, government loans obtained through the issuance of securities on behalf of the Government of the Russian Federation, and other debt obligations guaranteed by the Government of the Russian Federation.

Debtor, debtor enterprise

An enterprise that does not fulfill or in the near future will not be able to fulfill its obligations to creditors. The legislation of the Russian Federation introduced the concept of an insolvent debtor (bankrupt).

Subsidies

Budget funds provided to the budget of another level of the budget system of the Russian Federation on a gratuitous and irrevocable basis to cover current expenses.

Secured income

Revenues that are transferred in whole or in part to a certain type of budget.

Pledge

A civil action that gives the right to the creditor under the obligation secured by the pledge (pledgee), in the event of failure of the debtor to fulfill this obligation, to receive satisfaction from the value of the pledged property preferentially before other creditors. The pledgee has the right to receive, on the same basis, satisfaction from the insurance compensation for loss or damage to the pledged property, regardless of whose benefit it is insured, unless the loss or damage occurred for reasons for which the pledgee is responsible. The pledge of land, enterprises, buildings, structures, apartments and other real estate (mortgage) is regulated by the mortgage law. A pledge arises by virtue of a contract. A pledge also arises on the basis of law upon the occurrence of the circumstances specified therein.

Investment fund

An intermediary who, by issuing securities, attracts privatization certificates and funds from citizens for their subsequent investment in privatization objects, real estate and securities of other joint-stock companies. There are open and closed types of investment funds. Open-ended investment funds sell their securities with the obligation to buy them back at the first request of investors. Closed-end investment funds issue their securities with the obligation to redeem them at the end of the period for which the fund was established.

Investors

Business entities (government bodies that direct funds to cover urgent and long-term needs), persons who own securities by right of ownership (owners) or other property rights (owners).

Endorsement

Its essence is that on the reverse side of the bill or additional sheet (allonge) an endorsement is made, through which the right to receive payment is transferred to another person along with the bill. The person who transfers the bill by endorsement is called the endorser, and the person who receives it is called the endorser. The act of transferring a bill of exchange is called endorsing or indorsing. Endorsement can be made in favor of any person, including even in favor of the payer or drawer. It should be simple and unconditional. Partial endorsement, i.e. transfer of only part of the bill amount is not allowed. The endorser is responsible for acceptance and payment. He can relieve himself of responsibility by writing “No recourse to me.”

Collection

A form of payment in which the bank (issuing bank) undertakes, on behalf of the client, to carry out actions at the client’s expense to receive payment and (or) acceptance of payment from the payer. The issuing bank that has received the client’s order has the right to attract another bank (executing bank) to carry it out. The procedure for making collection payments is regulated by law, the banking rules established in accordance with it and the business customs used in banking practice.

Limitation of actions

Time limit for protecting the right to a person’s claim. whose right has been violated. The general limitation period is set at three years. For certain types of claims, the law may establish special limitation periods, shorter or longer than the general period. The limitation period, in particular, does not apply to depositors’ claims to the bank for the issuance of deposits.

Commercial banks

Private and public banks that carry out universal lending operations to industrial, commercial and other enterprises, mainly at the expense of the monetary capital that they receive in the form of deposits.

Commercial loan

A loan provided in commodity form by sellers to buyers in the form of deferred payment for goods sold. It is provided against the obligation of the debtor (buyer) to repay both the principal amount and the accrued interest within a certain period of time. There are five main ways to provide a commercial loan: bill method; open account; discount provided payment is made within a certain period of time; seasonal loan; consignment.

Bankruptcy estate

The property of the debtor, which may be foreclosed upon during bankruptcy proceedings.

Bankruptcy proceedings

A procedure aimed at the forced or voluntary liquidation of an insolvent enterprise (i.e. bankrupt).

Bankruptcy creditor

An individual or legal entity that has property claims against the debtor and is not a holder of security rights.

Consignment

A method of lending in which a retailer can simply obtain inventory without obligation. If the goods are sold, then payment will be made to the manufacturer, and if not, the retailer can return the goods to the manufacturer without paying a penalty. Consignment is usually used when selling new, atypical goods, the demand for which is difficult to predict. An example is the practice of producing and selling new textbooks for institutions. Book publishers send their books to institute bookstores with the condition that they be returned if they are not sold.

Loan agreement

An agreement under which a bank or other credit organization (lender) undertakes to provide funds (loan) to the borrower in the amount and on the terms stipulated by the agreement, and the borrower undertakes to return the amount of money received and pay interest on it. The loan agreement must be concluded in writing. Failure to comply with the written form entails the invalidity of the loan agreement. Such an agreement is considered void. The lender has the right to refuse to provide the borrower with the loan provided for in the loan agreement in whole or in part if there are circumstances clearly indicating that the amount provided to the borrower will not be repaid on time. The borrower has the right to refuse to receive a loan in whole or in part by notifying the lender before the deadline established by the agreement for its provision, unless otherwise provided by law, other legal acts or the loan agreement. If the borrower violates the obligation for the intended use of the loan provided for in the loan agreement, the lender also has the right to refuse further lending to the borrower under the agreement.

Leasing

It is a special form of financial investment for the purchase of equipment, durable goods or real estate. Participants in leasing operations are, as a rule, three parties: the enterprise - the manufacturer of the leased object; leasing company - lessor; as well as the enterprise - the tenant (lessee).

Broker

An intermediary in concluding transactions on stock and commodity exchanges, who acts on behalf of clients and at their expense.

Minimum budgetary provision

The minimum acceptable cost of state or municipal services in monetary terms provided by state authorities or local governments per capita at the expense of the relevant budgets.

Minimum state social standards

Public services, the provision of which to citizens on a gratuitous and irrevocable basis through funding from the budgets of all levels of the budget system of the Russian Federation and the budgets of state extra-budgetary funds, are guaranteed by the state at a certain minimum acceptable level throughout the Russian Federation.

Tax

A mandatory, individually gratuitous payment levied on organizations and individuals in the form of alienation of funds belonging to them by right of ownership, economic management or operational management, for the purpose of financial support for the activities of the state and (or) municipalities. Signs of a tax: compulsory nature; gratuitousness; non-equivalence.

Tax inspections

Bodies of operational financial control. The system of tax authorities is headed by the Ministry of Taxes and Duties of the Russian Federation. The tasks of tax services are: a) monitoring compliance with tax legislation, ensuring the completeness and timeliness of tax payments to the budget; b) carrying out inspections of the financial condition of enterprises and organizations, regardless of departmental subordination and their organizational and legal form; c) control over the correct determination of taxable profit (income) in order to prevent its understatement; d) registration of all subjects, as well as real and potential objects of taxation; e) accounting, evaluation and sale of confiscated, ownerless property, property transferred to the state, treasures. Tax inspectorates have the right to: receive the necessary documents and information from organizations of various forms of ownership, with the exception of those that constitute a commercial secret determined by law; monitor compliance with legislation on citizen entrepreneurship; inspect all premises used for generating income; suspend all operations of enterprises and citizens in case of failure to provide documents; seize documents indicating concealment of income; apply sanctions and fines; bring claims to court and arbitration for the liquidation of enterprises and recognition of transactions as invalid.

Immovable things (real estate, real estate)

Land plots, subsoil plots, other objects and everything that is firmly connected to the land, that is, objects whose movement without disproportionate damage to their purpose is impossible, including forests, perennial plantings, buildings, structures. Immovable property also includes aircraft and sea vessels, inland navigation vessels, and space objects subject to state registration. The law may classify other property as immovable property.

Penalty (fine, penalty)

The amount of money determined by law or contract that the debtor is obliged to pay to the creditor in the event of non-fulfillment or improper fulfillment of an obligation, in particular in case of delay in performance. Upon a claim for payment of a penalty, the creditor is not required to prove that he suffered losses. The creditor has no right to demand payment of a penalty if the debtor is not responsible for non-fulfillment or improper fulfillment of obligations.

Government bonds

Securities issued by the state in order to attract part of borrowed funds to the state budget. Income received from government securities, unlike corporate securities, has preferential taxation. Currently, the Ministry of Finance of the Russian Federation, on behalf of the Government of the Russian Federation, is attracting short-term borrowed funds from legal entities and the population under bond issues. The most common short-term loan is a loan against the issue of government short-term zero-coupon bonds (GKOs).

Corporate bonds

Mortgage bonds (backed by physical assets) unmortgaged bonds (direct debt obligations that do not create a property claim against the corporation) bonds secured by other securities of the company (backed by shares or debentures of the company) convertible bonds (give the investor the right to purchase common shares of the same company at a certain price for a certain period) income bonds (they earn interest only when income is earned).

Municipal bonds

Issued for the purpose of raising funds for the construction or repair of public facilities: roads, bridges, water supply systems, etc. They are divided into the following types of general obligation bonds (backed by the good faith of the issuer) bonds for project income (repaid from income from projects for financing of which they are issued).

Bond

A security certifying the right of its holder to receive from the person who issued the bond, within the period specified by it, the nominal value of the bond or other property equivalent. The bond also provides its holder with the right to receive a fixed percentage of the nominal value of the bond or other property rights.

Cash liabilities

Must be expressed in rubles. A monetary obligation may stipulate that it is payable in rubles in an amount equivalent to a certain amount in foreign currency or in conventional monetary units (ecus, for example). In this case, the amount payable in rubles is determined at the official exchange rate of the relevant currency or conventional monetary units on the day of payment, unless a different rate or another date for its determination is established by law or by agreement of the parties.

Overdraft

A negative balance on the client’s current account, which sometimes acquires the status of a loan, i.e. a form of short-term loan, the provision of which is carried out by debiting funds from the client’s account by the bank in excess of the balance in the account, resulting in the formation of a debit balance. With an overdraft, all amounts credited to the client’s current account are used to repay the debt; therefore, the volume of the loan changes as funds are received, which distinguishes an overdraft from regular loans. Interest will be charged at existing or agreed rates.

Option

The right to choose the method of fulfilling an obligation granted by one of the parties to the contract, its terms, or the right to refuse to fulfill an obligation under certain conditions.

Option loan

A loan with an option is a form of loan or debt obligation in which the lender, within certain limits, is given the right to choose repayment.

Offeror

The person making the offer.

Offer

A formal proposal to a specific person to enter into a transaction, indicating all the conditions necessary for its conclusion.

Liabilities

Liabilities (except for subventions, subsidies of own funds and other sources) of an enterprise consisting of borrowed and raised funds, including accounts payable.

Bill of exchange (draft)

Issued and signed by the creditor (drawer). It contains an order to the debtor (drawee) to pay within the specified period the amount indicated in the bill of exchange to a third party (remitee).

Payment order

The payer's order to the bank to transfer a certain amount of money to the account of the person specified by the payer in this or another bank within the period provided for by law or established in accordance with it, unless a shorter period is provided for in the bank account agreement or is not determined by the customs of business transactions applied in banking practice at the expense of funds on his account.

Policy

A document from the insurance authority confirming the existence of a concluded insurance transaction.

Fees

Amounts of money collected by specially authorized institutions for actions performed in favor of an enterprise or individuals.

Company

A property complex used for business activities. In general, an enterprise as a property complex is recognized as real estate. The composition of the enterprise as a property complex includes all types of property intended for its activities, including land plots, buildings, equipment, inventory, raw materials, products, claims, debts, as well as rights to designations that individualize the enterprise its products, works and services (company name, trade marks) marks, service marks) and other exclusive rights, unless otherwise provided by law or contract.

Profit (loss) from sales of products and goods

Defined as the difference between revenue from the sale of products (works, services) in current prices without value added tax and excise taxes, as well as for its production and sale

Promissory note (solo bill)

It is written and signed by the debtor and contains his unconditional obligation to pay the creditor a certain amount at a specified time and in a certain place.

Regulatory revenues

Revenues that are intended to support the lower budget, respecting the chain of command. The list of assigned and regulating income is fixed by special tax laws and codes.

Reserves

Part of the financial resources that is intended to finance needs that arise unexpectedly and are aimed at both simple and expanded reproduction and consumption. Insurance reserves are part of the financial resources aimed at compensating for damages in insured events. Insurance financial reserves are the financial reserves of insurance companies. These reserves are needed when current funds are not enough to pay.

Decision to issue securities

A written document registered with the state registration authority and containing data sufficient to establish the scope of rights certified by the security.

Ruble

Currency of the Russian Federation, legal tender mandatory for acceptance at face value throughout the Russian Federation.

Stocks and bods market

Part of the loan capital market where the issue and purchase and sale of securities takes place. Through the securities market (banks, special credit institutions and the stock exchange), monetary savings of legal entities, individuals and the state are accumulated and directed to productive and non-productive investment of capital. There is a distinction between the primary securities market, where the issue and initial placement of securities takes place, and the secondary market, where the purchase and sale (circulation) of previously issued securities is carried out.

Savers

Legal entities and individuals accumulating funds due to the fact that expenses are less than the accumulated funds concentrated in the hands of individuals or in bank accounts (population, enterprises and the state).

Savings (deposit) certificate

A security certifying the amount of the deposit made to the bank and the right of the depositor (certificate holder) to receive, upon expiration of the established period, the amount of the deposit and the interest stipulated in the certificate from the bank that issued the certificate or from any branch of this bank. Deposits can be on demand (they give the right to withdraw certain amounts upon presentation of a certificate) and time deposits (which indicate the period for withdrawal of the deposit and the amount of interest due).

Collection

A mandatory contribution levied on organizations and individuals, the payment of which is one of the conditions for the execution in the interests of payers of fees by state bodies, local governments, other authorized bodies and official types of securities. Financial market participants: savers, investors, issuers.

Financial plan

A systemic set of measures to materially mediate the functioning of the state. It is drawn up for a period of 1 to 5 years and is included in the budget. In form, a financial plan is a statement of goals, figures and organizational proposals for the planned period. In an enterprise, planning is based on taking into account the law of value, and planning acts as an economic category. Financial plans have all links of the financial system of enterprises and organizations operating on a commercial basis, they draw up balances of income and expenses, institutions engaged in non-commercial activities - estimates, cooperative organizations, public associations and insurance companies - financial plans, government bodies - budgets of different levels . The object of financial planning is the financial activities of business entities and the state, and the final result is the preparation of financial plans, ranging from the estimate of an individual institution to the consolidated financial balance of the state. Each plan defines income and expenses for a certain period, connections with parts of the financial and credit systems (social insurance contributions, payments to the budget, fees for a bank loan, etc.). Financial plans are available at all levels of the financial system; enterprises and organizations operating on a commercial basis draw up a “balance of income and expenses”, enterprises and organizations operating on a non-commercial basis draw up an “estimate”, a plan for public associations - a “financial plan”, government bodies make up the “budget” (at different levels: central, local, subjects of the Federation).

Financial return

The amount of profit received from invested resources. The main task is to reduce financial intensity and increase financial productivity in social production. It must be remembered that an important reserve for the growth of financial resources is the improved reproductive structure of financial resources and the value of the social product.

Finance

A set of objectively determined economic relations that have a distributive nature, a monetary form of expression and are materialized in cash income and savings, formed in the hands of the state and business entities for the purposes of expanded reproduction, material incentives for workers, and satisfaction of social and other needs. The condition for the functioning of finance is the availability of money, and the reason for the emergence of finance is the need of business entities and the state for resources that support their activities.

Stock Exchange

A specialized organization that brings together professional participants in the securities market, creating conditions for the concentration of supply and demand, as well as for increasing the liquidity of the market as a whole. An exchange is a specific trading organization that is subject to special rules and procedures. During the process of exchange trading meetings, the market price (rate) of the Central Bank is established using special methods, information about which, along with information about the volumes of completed transactions, becomes available to a wide range of investors. In this regard, the stock exchange can be likened to a sensitive device that signals the state of the stock market, and through it, the state of affairs in the economy as a whole.

Forfaiting

This is a credit operation in which the exporter, having received drafts (bills of exchange) accepted by the importer from the importer, sells them at a discount to a bank or specialized financial firm. When the draft payment becomes due, the importer usually repays his debt in semi-annual payments. Traditionally, large banks are usually involved in lending to foreign trade companies on the basis of forfeiting. By resorting to forfeiting, the exporter has the opportunity to additionally mobilize funds and reduce receivables. An exporter turns to the forfeiting market if he is unable to obtain a guarantee from a government institution, or his foreign trade contract is not creditworthy enough, or his own financial situation does not allow him to divert funds for a long time.

Futures, or futures contract

A standard agreement for the supply of goods in the future at a price determined by the parties when making a transaction.

Security

A document certifying, in compliance with the established form and required details, property rights, the exercise or transfer of which is possible only upon presentation. With the transfer of a security, all rights certified by it are transferred in the aggregate. In cases provided for by law, or in the manner established by it, for the exercise and transfer of rights certified by a security, it is sufficient evidence of their recording in a special register (regular or computerized). Securities include government bonds, bonds, bills of exchange, checks, deposits and savings certificates, bearer bank savings book, bill of lading, shares, privatization securities and other documents that are classified as securities by securities laws or in the manner established by them. When purchasing a security, an investor can count on at least two types income: investment and exchange rate.

Registered securities

Securities for which investor information must be available to the issuer at the security registry firm.

Bearer securities

Securities, the transfer of rights to which and the exercise of rights certified by them do not require mandatory identification of the name of the investor.

Securities circulation

Concluding civil transactions involving the transfer of ownership of securities.

Securities release form

A form of securities issue in which the investor is identified on the basis of presentation of a properly executed security certificate or, in the case of deposit of such, this certificate and an entry in the securities account.

Central banks

Banks that issue banknotes and are centers of the credit system. They occupy a special place in it and are, as a rule, government institutions.

Check

A security containing an unconditional order from the drawer to the bank to pay the amount specified in it. Only a bank where the drawer has funds that he has the right to dispose of by issuing checks can be indicated as the payer of a check. Cancellation of a check before the expiration of the period for its presentation is not permitted. The issuance of a check does not extinguish the monetary obligation for which it was issued. The form of the check and the procedure for filling it out are determined by law and the banking rules established in accordance with it.

Emission rights

A set of legal rules governing the release of money into circulation.

Emission

Issue of banknotes into circulation. On the territory of the Russian Federation, the monopoly right to issue banknotes into circulation belongs to the Central Bank of the Russian Federation.

Issuers

Legal entities that can issue securities. With the help of the financial market, the cash savings of savers are attracted to invest costs for the development of production, the implementation of state and regional target programs and other needs. An objective prerequisite is the discrepancy between the needs for financial resources of business entities and the availability of sources of financial resources.

Entity

An organization that has separate property in ownership, economic management or operational management and is liable for its obligations with this property can, on its own behalf, acquire and exercise property and other non-property rights, bear responsibilities, and be a plaintiff and defendant in court. Legal entities must have an independent balance sheet or budget and be registered as a legal entity. Legal entities can be organizations that pursue profit-making as the main goal of their activities (commercial organizations) or do not set profit-making as such a goal and do not distribute the profits between participants (non-profit organizations).

EDUCATIONAL INSTITUTION OF THE FEDERATION OF TRADE UNIONS OF BELARUS INTERNATIONAL UNIVERSITY "MITSO"

DICTIONARY OF MODERN ECONOMIC TERMS

REVIEWERS:

Doctor of Economics, Professor, Head of the Department of Economic Theory and Economic Education BSPU named after Maxim Tank L. N. Davydenko; Candidate of Economic Sciences, Associate Professor of the Department of International Business of BSEU A. I. Kuradovets

Dictionary of modern economic terms / comp. C48 A.I. Bazylev [and others]. - Minsk: International. University "MITSO", 2012. -

ISBN 978-985-497-155-1.

The dictionary contains terms and concepts of market economics used in modern economic theory and practice. The terminology covers general economic, budgetary, financial, trade, currency, and tax issues. The most important problems of international economic relations are considered: globalization, regionalization, transnational capital and international institutions, free economic zones, international transport corridors.

The dictionary is addressed to MITSO students for practical use in preparation for classes, SURS, tests, testing, course and state exams, as well as to everyone interested in economic problems.

UDC 33 BBK 65ya2

ISBN 978-985-497-155-1 © International University "MITSO", 2012

INTRODUCTION

IN conditions of the transition of the Republic of Belarus to a market economy, the development of entrepreneurship and business, the formation of a socially oriented society, it is necessary to create conditions for a qualitatively new system of economic education and economic education of youth. Along with the knowledge that students receive from monographic literature, textbooks, teaching aids, they must master new terms and concepts related to the introduction of market relations. This is especially true for students of economic universities and economic specialties.

IN The establishment of the Federation of Trade Unions of Belarus International University "MITSO" provides training in the following specialties: "Management", "Economics of Enterprise Management", "Marketing", "Finance and Credit", "Logistics", "World Economy".

Students of these specialties need to know not only the essence of the basic economic terms that characterize a market economy, but also the new content of well-known concepts. The Dictionary of modern economic terms compiled by teachers of the Department of World Economy and Finance of the FPB International University "MITSO" can help students master modern economic terminology.

The main task of the Dictionary is to assist university students in preparing for practical and seminar classes, SURS, tests, testing, tests, coursework and state exams.

IN The dictionary lists in alphabetical order the basic concepts and terms of economics, economic doctrines, economic models, property relations, and basic concepts of a market economy.

Terminology on microeconomics is given, including such concepts as demand, supply, market equilibrium, elasticity of supply and demand, and legal forms of enterprises. Considerable attention is paid to the interpretation of macroeconomic terms: national economy; national accounting system; forms of national product; national wealth; aggregate supply and demand; macroeconomic instability; money market; fiscal and monetary policy. In the conceptual aspect, finance, the state budget and its functions, taxes, etc. are considered.

The work of the Department of World Economy and Finance in publishing the Dictionary was carried out on the basis of taking into account its core specialties “Finance and Credit” and “World Economy”. In this regard, it presents models of words that are most important in their functioning in the modern economic sphere: finance, banks and business; borrowing and lending; asset Management; securities market, etc.

IN The dictionary examines the basic concepts of international economic relations that arise between states, regions, companies, financial groups and other participants in economic processes. The basic concepts of international relations are examined both separately in the financial, trade, production sense, and in terms of economic, including labor relations.

IN In the modern world, globalization is particularly relevant

And regionalization of international economic relations. The dominant role in establishing the world economic order belongs to transnational capital and international institutions, among which the World Bank and the International Monetary Fund (IMF) are of economic interest. As a result of the international division of labor, world poles of economic and technological development were formed (North American, Western European and Asia-Pacific). The Dictionary reflects current problems of international economic relations: the creation of free economic zones and international transport corridors; internet economics; private and foreign investments, which are becoming increasingly important in economic development. The most common terms and economic concepts associated with market relations are also included.

, Candidate of Economic Sciences, Professor;

, Master of Economic Sciences, senior lecturer;

, Candidate of Historical Sciences, Associate Professor;

, Candidate of Economic Sciences, Associate Professor;

, Master of Economic Sciences, senior lecturer.

ABANDON - renunciation of debt claims, voluntary renunciation of property, withdrawal from a transaction by paying a fine; waiver by the policyholder of his rights to the insured property in favor of the insurer for the purpose of

receiving from him the full insurance amount.

ABSOLUTELY INELASTIC DEMAND - the amount of demand

sa, which does not change with changes in price.

ABSOLUTELY ELASTIC DEMAND - the slightest reduction in price, which leads to an increase in the quantity demanded to infinity.

ABSOLUTE IMPRIORITY- a situation when the population or part of it is able to satisfy the most minimal needs for food, clothing and housing, i.e., needs that ensure the maintenance of life.

ABSOLUTE AND COMPARATIVE ADVANTAGE IN INTERNATIONAL TRADE THEORY - the teachings of the classics of English political economic thought Adam Smith and David Ricardo. According to Smith, absolute advantages in international trade are created by a country's ability to produce any the product is produced more efficiently (per unit cost) than in another country. The benefits are determined by the difference in absolute production costs (the number of people required to produce a unit of good) in each country. Ricardo considered Smith's position to be correct, but a special case. Having an absolute advantage does not necessarily mean that it is efficient to export that good to another country that may have a comparative advantage in production. A country should specialize in the production and export of those goods that can be produced at relatively low cost. Imports should be dominated by goods with relatively high production costs. As a result, the structure of foreign trade should be determined by comparative rather than absolute advantage.

ABSTRACTING- abstraction from the unimportant, highlighting the most important facts and relationships in the economy.

AVAL - a bill of exchange guarantee, by virtue of which the avalist who gave it assumes responsibility for the fulfillment of obligations by any of the persons obligated under the bill (acceptor, drawer, endorser). A. may be accepted for the entire amount of the bill or for part of it.

ADVANCE - a sum of money or other value issued in advance against upcoming payments for property, work performed and services rendered.

ADVANCE - an economic operation in which money spent on production goes through various phases of the value circuit, returning to its starting point with an increase in the value of the surplus product.

ADVICE - an official notice of changes in the state of mutual settlements, transfer of money, sending of goods, etc., sent by one counterparty to another. Banks notify their clients with the help of A. about debit and credit entries on accounts, account balances, payment of transfers, issuance of a check, and opening of a letter of credit. The A. usually indicates its number, date of departure, content of the transaction, amount, payer, recipient, their account numbers and other data.

AUTARKY [gr., self-satisfaction] - political-economic isolation of the state aimed at creating a closed national economy, i.e. reliance on its own resources. Economic autarky is the independent development of an economy that ignores the international division of labor and international trade.

AUTOMATIC ADJUSTMENT - macroeconomics

ical adjustment as a result of economic laws.

AUTOMATIC STABILIZERS - economic mechanisms that automatically reduce the amplitude of fluctuations in income and prices, softening the reaction of the level of gross national product to changes in aggregate demand without any direct intervention by government, firms or individuals. One of the most important stabilizers is a progressive income tax.

AUTOMATIC EFFECTS- changes in income not directly dependent on the government due to changes in the tax base. For example, an increase in the cost of imports leads to an increase in revenue from import duties.

AUTONOMOUS INVESTMENTS- planned joint

capital investment expenditures independent of the level of income in the economy.

HOLDINGS - 1. assets (cash, checks, bills, transfers, letters of credit), through which payments are made and obligations are repaid; 2. deposits of individuals and organizations in banks, which they can dispose of; 3. bank funds in foreign currency, securities and gold, stored in foreign banks.

TAX AGENT - a person who is entrusted with the responsibility for calculating and paying taxes to the budget.

TRADE AGENT - a legal entity or individual who performs legal actions (concluding transactions) at the expense and in the interests of another person (principal).

EMPLOYMENT AGENCY - enterprise, activity

acting as an agent on behalf of companies seeking workers and on behalf of people seeking employment. Compiles lists of vacancies provided by potential employers, lists of job seekers. In addition, may advertise jobs and recruit staff.

MONEY UNIT- types of money and funds that differ from each other in the degree of liquidity, i.e., the ability to quickly convert into cash.

AGGREGATION - consolidation of economic indicators by combining them into a single group. It is carried out by summing, grouping or other methods of reducing particular indicators into generalized ones.

ADAPTATION - adaptation of the economic system and its individual subjects, workers to the changing conditions of the external environment, production, and labor.

AD VALORITY - cost, calculated in the form of a fixed percentage of the total cost of the goods, transaction (tax, commission, customs duty, etc.).

ADMINISTRATIVE COMMAND SYSTEM - a system of managing the country's economy, in which the dominant role belongs to distributive, command methods and power is concentrated in the central governing body, in the bureaucratic apparatus. It is characterized by purposeful directive planning. It contradicts the democratic principles of management and impedes the development of the free market, competition, and entrepreneurship.

ADMINISTRATIVE-TERRITORIAL DIVISION -

division of the territory of the state into regions, districts, provinces, provinces, departments, etc., in accordance with which the system of local government bodies is built and functions.

ADMINISTRATIVE METHODS OF MANAGEMENT - capable

methods and forms of management, which are based on bare administration, management based on orders, instructions issued from above the installation.

ASIA-PACIFIC ECONOMIC CO-

COOPERATION (APEC)- a regional grouping created in 1989. The association includes the states of the Pacific Ocean,

very different in level of socio-economic development. In 1995, a Program was adopted providing for the creation of a free trade and investment zone by 2010 for industrialized countries and by 2020 for developing countries.

ACQUISITOR - an insurance worker engaged in concluding new and renewing prematurely terminated contracts.

AQUITENS is a document that releases you from financial liability.

LETTER OF CREDIT - an order from a bank to one or more banks to make, by order and at the expense of the client, payments to an individual or legal entity within the specified amount on the terms specified in the letter of credit.

ACCUMULATION - accumulation, collection.

ACT is an official document that has legal force. AUDIT ACT - an official document by which the

The results of a survey of the financial and economic activities of an organization or firm by the auditing body are presented.

ACTIVE OPERATIONS OF BANKING - operations through which banks allocate the resources at their disposal.

ASSETS - a set of property rights (property) owned by an individual or legal entity in the form of fixed assets, intangible assets, tangible inventories, cash, financial investments; the left side of the company's balance sheet.

ASSETS OF THE ENTERPRISE- property of the enterprise, consisting of material, financial, non-property assets. The tangible assets of an enterprise include land plots (both owned and used), buildings and structures for production and non-production purposes, other buildings and structures on the balance sheet of the enterprise, equipment, inventory, raw materials, products, etc. Financial assets of the enterprise include cash, bank deposits, deposits, checks, investments in other securities, commercial loans, shares in other commercial organizations, portfolio investments in shares of other enterprises, etc. Non-property assets of an enterprise - rights to designations that individualize the enterprise, its products, works and services (company name, trademarks, service marks, other exclusive rights).

FINANCIAL ASSETS- a set of financial instruments accumulated as of a certain date by legal entities and individuals (cash on hand, checks, monetary documents, securities, etc.).

ACTUARY CALCULATIONS- a system of mathematical and statistical calculations used in insurance. Reflect the mechanism of formation and expenditure of the insurance fund in long-term insurance operations related to the life expectancy of the population. A. r. are based on determining the probability of an insured event

V depending on the age of the insured. Tariff rates are determined based on actuarial calculations.

ACCEPTANCE is one of the forms of obligations to carry out non-cash payments between business entities for products supplied, services provided or work performed, which provides for obtaining the buyer’s consent to pay for the products.

ACCEPTANT - a person who accepted the offer and thereby consented to the conclusion of the contract.

EXCISE tax is a type of indirect tax, mainly on consumer goods, as well as services. A. is included in the price of goods or tariffs for services and is transferred to the state budget.

SHAREHOLDER - a participant in a commercial organization created

V form of a joint stock company, owning shares of this company, which confirm the size of its contribution to the authorized capital. The rights and obligations of shareholders, including the right to participate in the management of a joint-stock company, as well as to receive dividends, are determined by the legislation on joint-stock companies, as well as the company’s charter.

JOINT-STOCK COMPANY- commercial organization

V in the form of a business company, the authorized capital of which is divided into a certain number of shares having the same par value. Participants in a joint stock company (shareholders) are not liable for the company's obligations and bear the risk of losses associated with the company's activities, within the limits of the value of the shares they own. Shareholders who have not fully paid for the shares bear joint liability for the obligations of the joint stock company to the extent of the unpaid portion of the value of the shares they own.

SHARE - a perpetual issue-grade security, indicating a contribution to the authorized capital of a joint-stock company and certifying the rights of its owner to participate in the management of this company, receiving part of its profit in the form of dividends and part of the property

or its value after settlement with creditors in the event of liquidation of the joint stock company. A. can be issued simple (ordinary) and privileged.

PRIVILEGED SHARE- a security that gives its owner the right to receive a dividend as a fixed percentage, a share of ownership upon liquidation of the company, but does not give the right to vote in the management of the company.

A SIMPLE SHARE, and a common share, is a security certifying the owner’s rights to receive part of the company’s profit in the form of a dividend, to participate in the management of the company and to a share of ownership of the joint-stock company upon its liquidation.

ALIENATION - alienation, mortgage, sale, transfer. ALTERNATIVE PRICE- labor time required to produce a unit of one product, expressed in terms of labor

the time required to produce a unit of another good.

OPPORTUNITY COSTS A l t e r n a t i n e v e r d o r e g -

k and, price of choice - the amount of goods that must be given up in order to obtain another good. The opportunity cost of using any resource, good or service is the cost of the next best alternative.

TAX AMNESTY- release of the person who committed a tax violation from liability for this violation.

DEPRECIATION - a gradual decrease in the value of fixed assets (structures, machinery, equipment) due to their wear and tear, as well as the gradual transfer of the value of fixed assets to manufactured products in order to accumulate funds for their renewal; the gradual repayment of debt by an individual or organization through periodic payments or redemption of obligations; recognition of a debt obligation as invalid due to its loss or theft.

ANALYSIS - 1. dividing the object of study into individual elements, into simpler economic phenomena and processes; 2. highlighting the essential aspects of phenomena and processes.

BALANCE SHEET ANALYSIS - a comprehensive assessment of the balance sheet, profit and loss accounts, as well as the report on the state of the organization (company) and appendices to the report.

ANALYTICAL METHOD- a general term meaning a set of particular methods for studying economics, including analysis and synthesis, abstraction, the assumption “all other things being equal”,