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Basic Economic Terms list with explanation. Alphabets - H

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What is Hedge?
Any action taken by a buyer / seller to protect his interest by spreading / lowering risk due to a change in price.

What is Hierarchy?
The line of authority in an organization that runs in order of rank from top management to the lowest level of the enterprise.

What is Horizontal Integration?
With reference to the structure of an industry it is the tendency to specialize in single processes instead of undertaking the entire production of the commodity from start to finish.

What is Hot Money?
Money that moves across country/borders in response to interest rate differences and that, which moves away when the interest rate differential disappears.

What is Hypermarket?
A hypermarket is a multi-brand, multi-department store under one roof meant to offer cost-effective shopping for household requirements.

What is Hypothecation?
Refers to the pledging of securities as collateral; for example to secure the debit balance in a margin account.

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