Banking Terms and Definitions – Part 3

Questions on Banking Awareness are an important part of IBPS PO, SBI PO, SBI Associate PO, IBPS Clerical, SBI Clerical and other bank exams. Today we will look at a few common terms and their meanings as used in Banking Industry. This is part-3 of a 24 part series.

What is IPO?

IPO is Initial Public Offering. This is the first offering of shares to the general public from a company wishes to list on the stock exchanges.

What is Disinvestment?

The Selling of the government stake in public sector undertakings.

What is Fiscal Deficit?

It is the difference between the government’s total receipts (excluding borrowings) and total expenditure.

What is Revenue deficit?

It defines that, where the net amount received (by taxes & other forms) fails to meet the predicted net amount to be received by the government.

What is GDP?

The Gross Domestic Product or GDP is a measure of all of the services and goods produced in a country over a specific period; classically a year.

What is GNP?

Gross National Product is measured as GDP plus income of residents from investments made abroad minus income earned by foreigners in domestic market.

What is National Income?

National Income is the money value of all goods and services produced in a country during the year.

What is Per Capita Income?

The national income of a country, or region, divided by its population. Per capita income is often used to measure a country’s standard of living.