AGGREGATE DEMAND
The sum of all demand within an economy, making up
national income and expenditure. The main categories are consumers expenditure
on goods and services, investtment in capital goods and stocks (inventories),
exports of goods and services, less expenditure on imports of goods and
services. Since keynes, it has been believed that the level of and changes in
aggregate demand are important influences in the determination of economic
output and growth. More recently, however, attention has been paid to the
factors affecting the supply of goods and services in the economy supplyside
economics (social accounting). IS-LM model; national income, determination of.
BILL
OF EXCHANGE
Used in international trade by which the drawer makes an unconditional
underlaking to play to the drawee a sum of money at a given date, usually three
months ahead. In principle a bill of exchange is similar to a post-dated
cheque, and like a cheque it can be endorsed for payment to the bearer or any
named person other than the drawer. A bill of exchange has to be
"accepted"(endorsed) by the drawer before it becomes negotiable. This
function is normally performed by an accepting house, but bills may also be
accepted by a bank (it is then known as a bank bill) or by a trader (trade
bill). Once accepted, the drawer does not have to wait for the bill to mature
before getting his money;he can sell it on the money market for a small
discount (discount house; eligible paper). Bills of exchange, also referred to
as commercial bills, were first developed in inland trade by merchants who
wished to resell goods before making payment for them (inland bill of
exchange). They later became of great importance in international trade, but
with the development of great importance in international trade, but with the
development of other means of credit, their use declined although in recent
years there has been some revival of interest in their use by commercial
corporations.
FISCAL
YEAR
Financial Year. A fiscal year or financial year is a 12-month period used for
calculating annual financial statements in businesses and other organizations.
In most jurisdictions there are laws governing the accounting and require such
reports once every twelve months.
