If an economy contracts successively in two quarters, its called as recession.

The breakdown of inter-country financial confidence leading to freezing of global investments and trade credits. Capitalism: A system where productive assets are largely in private hands than publicly or state owned. New Capitalism (Government as the saviour shareholder): When large companies go bankrupt and request funds from the governments. Credit (debt) as the basis of modern capitalistic economies Credit squeeze To control inflation in economy, when the flow of government funds through banks is restricted (by raising interest rates). Liquidity crisis When business experiences cash shortage to meet day to day operations Monetary policy How much money should be given to whom at what interest rate and when. Decided by banks, e.g. RBI Fiscal policy How much of the taxpayer money should be spent on what projects, how and when. Decided by government Mortgage Loan against collateral Home mortgage Loan against home collateral Insurance IF things go wrong, then insurance company will pay the amount. Based on assumption that changes og going wrong are very less. Double-Dip Recession

What Does Double-Dip Recession Mean? When gross domestic product (GDP) growth slides back to negative after a quarter or two of positive growth. A double-dip recession refers to a recession followed by a short-lived recovery, followed by another recession.

Watch: What Is A Double Dip Recession?

Investopedia explains Double-Dip Recession The causes for a double-dip recession vary but often include a slowdown in the demand for goods and services because of layoffs and spending cutbacks from the previous downturn. A double-dip (or even triple-dip) is a worst-case scenario. Fear that the economy will move back into a deeper and longer recession makes recovery even more difficult.

Read more: http://www.investopedia.com/terms/d/doublediprecession.asp#ixzz1Z7odOuTR

Definition of 'Spot Market'

1. A commodities or securities market in which goods are sold for cash and delivered immediately. Contracts bought and sold on these markets are immediately effective. 2. A futures transaction for which commodities can be reasonably expected to be delivered in one month or less. Though these goods may be bought and sold at spot prices, the goods in question are traded on a forward physical market.
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Investopedia explains 'Spot Market'

1. The spot market is also called the "cash market" or "physical market", because prices are settled in cash on the spot at current market prices, as opposed to forward prices. 2. Crude oil is an example of a future that is sold at spot prices but its physical delivery occurs in one month or less. Read more: http://www.investopedia.com/terms/s/spotmarket.asp#ixzz1p6zhXgKi

Definition of 'Futures Market'

An auction market in which participants buy and sell commodity/future contracts for delivery on a specified future date. Trading is carried on through open yelling and hand signals in a
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trading pit.

Investopedia explains 'Futures Market'

Volume in the futures market usually increases when the stock market outlook is uncertain. Read more: http://www.investopedia.com/terms/f/futuresmarket.asp#ixzz1p709e6Y3

Definition of 'Mortgage'
A debt instrument that is secured by the collateral of specified real estate property and that the borrower is obliged to pay back with a predetermined set of payments. Mortgages are used by individuals and businesses to make large purchases of real estate without paying the entire value of the purchase up front.

Mortgages are also known as "liens against property" or "claims on property".

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Investopedia explains 'Mortgage'

In a residential mortgage, a home buyer pledges his or her house to the bank. The bank has a claim on the house should the home buyer default on paying the mortgage. In the case of a foreclosure, the bank may evict the home's tenants and sell the house, using the income from the sale to clear the mortgage debt. Read more: http://www.investopedia.com/terms/m/mortgage.asp#ixzz1pAUm9kdE

Definition of 'Cost Of Equity'

In financial theory, the return that stockholders require for a company. The traditional formula for cost of equity (COE) is the dividend capitalization model:

A firm's cost of equity represents the compensation that the market demands in exchange for owning the asset and bearing the risk of

ownership.

Investopedia explains 'Cost Of Equity'

Let's look at a very simple example: let's say you require a rate of return of 10% on an investment in TSJ Sports. The stock is currently trading at $10 and will pay a dividend of $0.30. Through a combination of dividends and share appreciation you require a $1.00 return on your $10.00 investment. Therefore the stock will have to appreciate by $0.70, which, combined with the $0.30 from dividends, gives you your 10% cost of equity. The capital asset pricing model (CAPM) is another method used to determine cost of equity Read more: http://www.investopedia.com/terms/c/costofequity.asp#ixzz1pscVKNht