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Basic Economic Terms list with explanation. Alphabet - N

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What is Near Money?
Assets which are readily convertible into money e.g. deposit accounts, deposit with savings banks and building societies, and certain short-term agreement securities.

What is Negotiable Instrument?
A claim, the title to which passes by delivery. Examples of such claims include bills of exchange,cheques, promissory notes, dividend warrants and debentures payable to bearer. Transfer is by delivery only. A bill of exchange payable to a certain person ?only? is not a negotiable instrument. Neither is a cheque with ?not negotiable? written on it. Bill of Lading, Dock Warrants, and Postal Orders are not negotiable.

What is NAV (Net Asset Value)?
The value of a fund?s investment. For a mutual fund, the net asset value per share usually represents the fund?s market price.

What is Net Book Value?
A statement of the value of fixed assets which is used in accounting. The appropriate amount of depreciation is deducted from the original cost of purchase of the asset to give its net book value.

What is Net Profit?
Resulted amount after deduction of Administration costs like overheads from Gross profit.

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