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Basic Economic Terms list with explanation. Alphabets - F

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What is Face Value?
Means the nominal value, as distinct from the market value, of a security (bond/share). The value written on a coin or a bank note is also termed as face value.

What is Factors of Production?
The resources required for production. The four factors of production are Land, Labour, Capital and Entrepreneur (Organization). Factors of production are resources required for production.

What is Factor Income?
Income accruing to factors of production ? rent for land, wage for labour, interest for capital, & profit for organizer.

What is Fiat Money?
Money which the State declares to be legal tender.

What is Finance?
The term is applicable to funds from almost any source which is used to undertake any kind of expenditure.

What is Finished Goods?
Refers to the goods, which are used for the purpose of consumption and not utilized as inputs by the firms in the process of production.

What is Fiscal Policy?
Generally refers to the use of taxation and government expenditure for regulating the aggregate level of economic activity.

What is Fixed Assets?
Includes the monetary value of the company?splant, equipment, property, patents, and other items used on a continuing basis to produce its goods and services.

What is Fixed Cost?
Refers to the production costs which tend to be unaffected by variations in the volume of output.

What is F.O.B. (Free on Board)?
Term used of goods shipped where the price does not include shipping and insurance charges; opposite to C.I.F. An F.O.B. quotation implies that the exporter will deliver the goods free on board a ship in accordance with the contract at the port named; he pays all expenses up to that point. From there on, the buyer must take responsibility, paying for freight, insurance, and all subsequent expenses

What is Forward Market?
A Forward market transaction involves a contract to buy or sell commodities, or securities at a fixed future date at a price agreed in a contract.

What is Franchise?
A type of licensing arrangement in which an organization sells a package containing a trademark, equipment, materials, services owned by another organization.

What is Free Market?
Refers to a market in which there is an absence of intervention by government and where the process of demand and supply are permitted to operate freely.

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