Engineer's Finance

I was going through the budget and this term was used quite frequently. I was perplexed and hence thought let me find more details about it.

These are the economic terms the economists use to scare the common man. In simple words it is a gap between the expenditure and the income. The gap between the government’s income and expenditure is known as Fiscal Deficit. The government’s borrowing is not considered as income. Generally the fiscal deficit can be financed from the Reserve Bank of India (which is referred to as Deficit financing or money creation) or from the market borrowing (primarily from the banks). Continue reading →

I wanted to explain about “Bad Debt” for quite a while but I was not quite sure how to go about it. I am sure most of you will know about the financial turmoil that the world is facing and that is mostly attributed to the US and the bad debt of US. I had read about the same lots of time but it was way too complicated and it had all the financial terms that I could not clearly put across. Recently I had a talk with one of the acquaintance and that led me to write this article. Continue reading →

These are some of the facts that I have collected over the years about money which I thought I will share it with you. I don’t have the source from where I have the following information so please forgive me for not providing it and I don’t take the ownership of the following information.

In olden days Spanish coins were known as pesetas and centimes. There were fifty centimes coins, and also coins of one and two and one half pesetas. The coins carried the portrait of Francisco Franco. Italian coins were called lira. Continue reading →

These days India is facing deflation. I was curious to know more about it; hence I found that out and am sharing the same with you. Deflation is opposite of inflation. The definition of deflation can be put as the real value of money increases. Inflation reduces the real value of money over time. Continue reading →