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Basic Economic Terms list with explanation. Alphabets - I

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What is Idle Money?
An inactive money that does not contribute to productive assets in an economy. It results from what Keynes called Liquidity Preference i.e.; the desire to hold money rather than risk it on interest-earning assets, or goods which may have little utility.

What is Income Tax?
Personal income tax is levied on individuals by the Central Government and the proceeds are shared between the Centre and the States. The income tax is progressive; that is, the tax rate is not uniform but rises progressively with the rise in money income.

What is Infrastructure?
Services which are regarded as essential for the creation of a modern economy; e.g.; power, transport, housing, education, health services.

What is Insolvent?
Means the state of being unable to pay one?s debts.

What is Interest?
A payment by a borrower for the use of a sum of money for a period of time. It is the reward for the use of capital in the process of production.

What is Intermediate Goods?
The goods which find use at some point in the production process of other goods, rather than final consumption.

What is Inventory?
The raw materials, work in progress and finished goods in organization maintained to meet its operational needs. A term used for the quantity of stock held by a business.

What is Invoice?
A document used in business giving a complete summary of a transaction involving the sale of 

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