Glossary of Economic Term

Term	Description
Accounting	The act or a system of establishing or setting financial accounts; especially the process of recording transaction in the financial records of a business and periodically extracting, sorting, and summarizing the recorded transaction to produce a set of financial records.
Asian Development Bank (ADB)	A multilateral institution based in Manila, Philippines, that provides financing for development needs in countries of the Asia-Pacific region. As of July 2000, ADB had 58 member countries
Asia-Pacific Economic Cooperation (APEC)	APEC Founded in 1989. It is a regional institutional arrangement among member countries linked by Pacific Ocean trade. APEC’s long term goal is free and open trade and investment in the Asia Pacific region.
Bank	A financial establishment which uses money deposited by customers for investment, pays it out when required, makes loan at interest, exchanges currency, etc.
Barter Economy	An economic model of international trade in which goods are exchanged for goods without the existence of money or any other similar unit of account or medium of exchange.
Bilateral Trade	The trade between two countries; that is, the value or quantity of one country's exports to the other, or the sum of exports and imports between them.
Black Market	A Market in which certain goods or services are routinely traded in a manner contrary to the laws or regulations of the government in power because substantial numbers of buyers and sellers desire to evade restrictive government price control to avoid paying heavy taxes on the good or service in question, or simply to be able to obtain forbidden goods or services that the government does not want the people to have at all.
Bond	Securities issued by a third person to the other to undertake his/her obligations, exercise his/her roles and responsibilities, when the concerned person fails to do so.
Business	A commercial enterprise carried on for profit; a particular occupation or employment habitually engaged in for livelihood or gain.
Capital	Money or assets invested or available for investment in a business.
Cash	Money or its equivalent; Currency or coins, negotiable checks, and balances in bank accounts.
Cash Flow	The movement of cash through a business, as a measure of profitability or liquidity; The cash generated from a business or transaction.
Check	A draft signed bay the maker or drawer, drawn on a bank, payable on demand, and unlimited in negotiability.
Closed Economy	An economy which does not engage in international trade.
Commission	A fee paid to an agent or employee for his service in facilitating a particular transaction, usually as a percentage of the money received from the transaction.
Compound Interest	Interest charged over loan where not only based on the principle amount but also on the amount of loan added with the previous interest cumulatively.
Consumer	A person who buys goods or services for personal, family or household use, with no intention of resale.
Consumption	The act of destroying thing by using it; the use of a thing in a way that thereby exhausted.
Cooperative	An organization formed for the purpose of producing or marketing goods or products owned collectively by members who share in the benefit.
Cost-Benefit Analysis	Evaluating projects, policies, and programs in terms of economic costs and benefits.
Credit	One’s ability to borrow money; the faith in one’s ability to pay debts. The time that a seller gives the buyer to make the payment that is due. Creditor is one to whom a debt is owed; one who gives credit for money or goods.

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