Bank-PO (IBPS) General-Awareness Banking and Finance Revision (Page 20 of 40)

Gross Profit margin

The difference between the sales a business generates and the costs it pays out for goods.


The undertaking of responsibility by one party for another party’s debt or obligation to perform some specific act or duty. Although the original debtor is responsible for the debt, the guarantor becomes liable in the event of a default.


The difference between the market value of a security and its value when used as collateral. The haircut is intended to protect a collateral taker from losses due to declines in collateral values.


One investment purchased against another investment in order to counter any loss made by either.

Holding company

A company which controls another company, usually by owing more than half of its shares.


Goods and services that a country buys from other countries.


If someone promises to compensate someone else for loss or damage, it is called an indemnity.

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