Anyone having soft copy of Indian Economy by Misra and Puri latest edition? Please share
how many of u are from hyderabad??
Puys, Please share study material on "communication" under management.Thanks
please can any1 give me a sample of committee report and proposal?
Question "High inflation is a source of internal and external disequilibrium"-Explain the
statement with reference to CAD (Current Account deficit) and weakening of the
rupee. (20 Marks, 2012, Paper III)
Answer: Containing Inflation has been a persistent challenge in Indian economy due to complex interplay of multiple factors. In the recent past we did face a very volatile situation of widening CAD and sharp rupee depreciation. While expectation of US Fed winding up of fiscal stimulus amidst improving US economic outlook was a major factor, inflation was a substantial factor behind this volatility.
Following were the areas affected by inflation which in turn directly or indirectly affected rupee and CAD.
Gold Import: Rising prices of essential commodities push the inflation high thereby effective rate of return on savings came down. In absence of any credible source for hedge against inflation people opted for gold purchase. As India purely depend on imports to satisfy its domestic gold requirements, this led to depletion of Forex reserve and depreciation of rupee against dollar. Recent initiative taken by RBI to curb gold import has show substantial reduction I gold imports.
Interest Rate: I pursuance of its anti inflationary stance RBI raised interest rate to compensate the demand side pressure which lead to high cost of credit Industry postponed its investments, consumers avoided new purchases and consumption this resulted in subdued production, output, employment generation and export Less export means less forex earning that has negative impact on CAD and hit the rupee.
Foreign Investment: subdued industrial activity hit the bottom line of corporate and market underperformed. There was less incentive for FII to invest in India. This bearishness led to higher CAD.
Capital Export: Domestic Corporate vary of investing in India eyed foreign companies having cheap valuation and acquired the same. High net worth individuals diverted their funds abroad for better return in view of underperformance of Indian market. These factors drained the capital which resulted in net rupee out flow and wider CAD.
Increase bill of Fuel Import: Afore mentioned factors resulted in rupee depreciation. Thus we had to spend more rupees for the same amount of fuel. This has spiraling effect and a vicious circle got created and rupee downward trend continued.
Therefore it is clear that inflation has not only hurt the internal economic activity but it had a repelling impact o external sector too. It turned out to e a double edged sword. This episode once again reaffirmed the resilience of our financial market and strength of regulatory regime.
Question: Write short note on the Stock market index. (10 Marks, 2012 Paper III)
Answer: Stock Market Indices reflect the cumulative performance of a select basket of stocks in proportion of their weighted average of market capitalization. For instance BSE sensex is an index containing top 30 company's shares as per their market capitalization .On a particular day if this index is in green it does not mean all thirty scripts are rising, it may turn out that some of them are in red also. Yet index as a whole is in green it means cumulative performance of these shares is positive
With the passage of time composition of the basket changes and under performers are replaced by new scripts as per fixed criteria. Generally stock exchanges across the world compose the index such a way that it could give a general impression about a particular sector or segment of stocks in order to gauge the mood of the market. For example BSE 500, BSE mid cap, BSE Blue chip, BSE reality, BSE Pharma, BSE Banking etc.
plz give me correct format/layout of business letter!!!!!
Hi Guys I am sharing one pdf file. For Finance I think it will be very helpful. Share with maximum. IT covers Money Market, Stock Exchanges, Capital Market etc.
https://drive.google.com/file/d/0B65KNDNdGizOSGlPMXdtaEdZaG8/edit?usp=sharing
Bloomberg financial glossary
What is Bhamashah?
When does Central Bank go for printing of new currency? How does it impact inflation? Can someone explain in simple terms?
It's written in the admit card that answer to the next question must be started on a fresh next page............ Does it mean that subquestion should also be started on a fresh next page.....??
Question: What happens if RBI starts printing to finance the govt. deficit? Wouldn't that result in inflation?
My Ans (inputs are welcome):
We shall differentiate between money and currency. Money is a wider term that includes
Three things- Hard currency in circulation and with central bank, Forex reserve and reserve generated out of fractional reserve banking system with central bank, money in the banking system in the form of deposit and advance.
Money has same value in all its forms (Hard currency /coin/Electronic/checking account/credit) but different effects .It's only a matter of demand which decides the amount of money to be printed. As an economy develops demand for currency reduces as money circulates in plastic/electronic form. In general out of all the money only near about 3% exist in printed form.
Moreover a sovereign country has full liberty to create/print as much money as it thinks fit and proper. Now a day's money is neither backed by gold nor by other tangible asset, it just have sovereign guarantee of the state, that's it. That's grate now GoI and RBI can print unlimited money and every Indian would become a billionaire. Is it all that easy? Let's see...
Modi calls Rajan and tells him "dude I want to eradicate poverty, I have an idea. Let's print more money. For which we do not require any permission from anywhere.
Rajan: Mr. Prime Minister we shall not play with the fire of money else it would ruined us within fortnight.
How dude?
It goes like this:
(A) you will give me G-sec/Bond, I will underwrite that and credit your account with RBI. Your Public debt goes up by same amount and fiscal deficit rises from 4.3 to 400.3%. since you do not have the capacity to repay this debt, MOODY, FITCH, S&P declares you junk, stock market crashes ad investor rush to cash their investment, this may lead to bank run as bank would become insolvent/illiquid due to huge SLR holding.FII exodus will kill the rupee.
(B) You may also start spending that newly generated money on social sector scheme and ultimately that money lands in public hand. Since production has not gone up, demand outpaced supply....inflation.
(C) I reduce CRR/SLR/Repo Rate- Huge amount of cheap money is injected in banking system. Loan is available at .003% rate .Every one took lined up for the loan-consumer boom->property bubble->BUST
Bottom Line: there is always a triple dilemma of growth Inflation and Money supply, which keeps central banks and Govts world over on toes and public dismayed and amused J Now we shall probability know where to draw red line I terms of monetary expansion. 😃
What roles do fiscal and monetary policies play in checking inflation?
Guys, I read in mrunal article that in order to control inflation RBI uses repo rate. For example, when inflation is very high, RBI increases repo rate. High repo rate means expensive funds for banks. Banks passes high cost of funds to customers by increasing interest. The increase in interest rates means expensive loans. So, industries will refrain from borrowing, which means no business expansion, which inturn means job cuts or salary cuts. People will be left with less or no money to buy things. So demand will decrease, companies will decrease the price of their products resulting in deflation.
But there is another scenario...
RBI increases repo rate-loans become expensive--- No borrowing for business expansion --- less production of toothpaste, soap, chaddi-banyan by business houses- but people will still need to clean their teeth, take bath, wear chaddi banyan (bare minimums for survival) etc etc... -- Means less production vis-à-vis demand --- prices of goods increase - high inflation.
I am confused guys.... Please guide me.
Background of those who cleared Phase-I?
- Others
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For those who cleared Phase I, are you also a civil services aspirant?
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- Planning to appear for civil services in future
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Question: Highlight the salient features of the Union Budget 2014-15 presented by new NDA government. (20 Marks, RBI, 2014)
plz share some topics of essay as per current affair & other scenarios that we can expect in english exam??
1, 13, 109, 307, 665, ?
Logic please