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EASY MONEY POLICY: As contrasted to tight money policy this refers a policy of the central bank of expanding money supply to reduce interest rates. One purpose of such a policy is to facilitate increase in investment thereby raising gross domestic product.
Earnings: The total profits of a company after taxation and interest.
Earnings per Share (EPS): The amount of annual earnings available to common stockholders as stated on a per share basis.
Earnings Yield: The ratio of earnings to price (E/P). The reciprocal is price earnings ratio (P/E).
E-Banking: E-Banking or electronic banking is a form of banking where funds are transferred through exchange of electronic signals between banks and financial institution and customers ATMs, Credit Cards, Debit Cards, International Cards, Internet Banking and new fund transfer devices like SWIFT, RTGS belong to this category.
ECONOMIC CAPITAL: As distinguished from Regulatory capital, the Economic Capital is defined by the Global Association of Risk Professionals (GARP) as the capital cushion required against the underlying credit, market and operational risk exposure of a banking organization. It is called 'economic" capital because it measures risk in terms of economic realities rather than potentially misleading regulatory or accounting rules.
ECONOMIC SYSTEM: The term refers to the nature of economic life as a whole, with particular reference to the ownership and use of property and extent of Government regulation and controls.
EFT - (Electronic Fund Transfer): EFT is a device to facilitate automatic transmission and processing of messages as well as funds from one bank branch to another bank branch and even from one branch of a bank to a branch of another bank. EFT allows transfer of funds electronically with debit and credit to relative accounts.
Electronic Commerce (E-Commerce): E-Commerce is the paperless commerce where the exchange of business takes place by Electronic means.
EMERGING MARKET ECONOMIES: These are countries that are starting to participate globally by implementing reform programmes and undergoing economic improvement. A term coined in 1981 by Antoine W Van Agtmael of the International Finance Corporation, an emerging market economy is defined as an economy with low- to- middle per capita income. Such countries constitute approximately 80% of the global population, representing about 20% of the world's economies. To begin with the term "emerging market" was used to describe a fairly narrow list of middle-to-higher income economies among the developing countries, with stock markets in which foreigners could buy securities. The term's meaning has since been expanded to include more or less all developing countries. EMEs are characterised as transitional, meaning they are in the process of moving from a closed to an open market economy while building accountability within the system. Examples include the former Soviet Union and Eastern Bloc countries.
Endorsement: When a Negotiable Instrument contains, on the back of the instrument an endorsement, signed by the holder or payee of an order instrument, transferring the title to the other person, it is called endorsement.
Endorsement in Full: Where the name of the endorsee or transferee appears on the instrument while making endorsement.
Equity: Ownership of the company in the form of shares of common stock.
Equity Call Warrants: Warrants issued by a company which give the holder the right to acquire new shares in that company at a specified price and for a specified period of time.
ESCROW ACCOUNT: Escrow account is an account where the moneys parked will be released only on fulfilment of some conditions of contract like export taking place or like power fed into the national power grid etc. (in the case of government getting power from independent power producers). The beneficiary of the account can get the money after fulfilling the prescribed conditions. It is an account placed in trust with a third party, by a borrower for a specific purpose and to be delivered to the borrower only up on the fulfilment of certain conditions.
Ex-dividend (XD): A security which no longer carries the right to the most recently declared dividend or the period of time between the announcement of the dividend and the payment (usually two days before the record date). For transactions during the ex-dividend period, the seller will receive the dividend, not the buyer. Ex-dividend status is usually indicated in newspapers with an (x) next to the stock’s or unit trust’s name.
Execution of Documents: Execution of documents is done by putting signature of the person, or affixing his thumb impression or putting signature with stamp or affixing common seal of the company on the documents with or without signatures of directors as per articles of association of the company.
EXCHANGE CONTROL: Refers to official restrictions, which limit the freedom of residents to buy and sell foreign exchange. The primary aim of exchange control is the conservation of scarce foreign exchange resources. Controls are also used generally to support exchange rate policy. Exchange control helps a country to avoid destabilising capital flows or sharp movements in reserves.
EXCHANGE RATE: This expresses the price of one unit of foreign currency in relation to the domestic currency in a foreign exchange market. The foreign exchange market is a market where currencies of different countries are traded. Under the fixed exchange rate regime where there are fixed par values, exchange rates are reasonably stable. Central Bank intervention in the forex market is frequent and most of the foreign exchange transactions are in the spot or cash market. Under the floating exchange rate system, exchange rates are not determined by Government or Central Bank but by the market forces of supply and demand. The exchange rates float or freely move up and down. As there would be large fluctuation in the rates, exposure to risk increases and large proportion of transactions takes place in forward market. Central Bank intervention in the market becomes less frequent. When the exchange rate is adjusted downwards, prices of exports of goods and services fall in foreign currency terms and causes increase in foreign demand. Imports become costlier in terms of domestic currency and tend to reduce domestic demand.
EXCHANGE RATE MANAGEMENT: One of the responsibilities of the RBI is to ensure the stability of the exchange rate of rupee. The RBI Act 1934 empowers the RBI to buy from and sell to any authorised person foreign exchange at such rate of exchange and on such terms and conditions that the government may decide. Presently the RBI announces a reference rate based on the quotation of a few selected banks in Mumbai at 12 noon every day and buys and sells only U.S. Dollar. The exchange rate is determined by the supply and demand of the currency. When the demand for currency exceeds supply, the currency becomes dear and vice versa. In order to bring orderly conditions in the market and protect the domestic currency's value, Central Bank intervenes in the market by selling or buying the foreign currency in the market. The objective of the exchange rate management is to ensure that the external value of the rupee is realistic and credible so as to have sustainable balance of payments position and healthy foreign exchange situation.
EXPOSURE NORMS: Refers to the prescription of limits on exposure with respect to credit (funded or non-funded) and investment to (i) individual/group borrowers in India, (ii) specific industry or sectors and towards unsecured guarantees and unsecured advances. Exposure limits are also prescribed with regard to advances against shares/debentures. This is intended to attain better risk management and avoidances of concentration of credit risks.
EXTERNAL DEBT: Refers to outstanding contractual liabilities of residents of a country to non-residents in gross terms, involving payment of interest with or without principal or payment of interest principal with or without interest. The debt liabilities consist of long term and short term liabilities and

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