My take :

Set-186
1- a
2- b
3- e
4- d
SET - 187
1-c
2-d
3-b
4-c

Got a Question in email
Currency Devaluation alone will not bring more FDI

1. If your currency is devalued, your exports will increase because American dude can purchase (import) more mangoes for the given $ 1 note.
   
2. But When you're talking about FDI: the Foreign investor will also look at many factors apart from just currency devaluation e.g.
   
3. Return on investment.
   
4. Safety of his invested money (Telenor's 2G license cancelled by SC)
   
5. Government policy on labor, civil laws,
   
6. Foreign Exchange laws (Capital account convertibility).
   
7. And Most importantly: Political stability and scenario.
   

1. For example, today Foreign investor Mr.X comes to India and Environment Minister demands five suitcases to clear his files, and it seems that current Government might collapse after a few months, and new Government's new minister would ask for another five suitcases-- Mr.X is unlikely to invest in such volatile situation.
   
2. In this context, Political stability in China is rock solid, judicial intervention in Administrative decision= minimal, unlike India. So they get more FDI.
   
3. Chinese President Hu Jintao was ranked #1 in Forbes' world's most powerful person list. The Magazine said
   

1. You don't hear about Niyamgiri, Jaitapur, POSCO or Kundankulam in China. Their Administrative machinary takes action quickly. Either "Yes or NO".
   
2. In India Decision Making is slow. Mohan won't say yes and he won't say no either. Files remain pending under consideration in GoM (Group of Ministers) for months. (As in case of Cairn Vedanta Deal)
   
3. You don't invest your money somewhere only because that country's currency is devalued. You look at all such factors. That's Currency Devaluation alone doesn't bring more FDI.
   

Related
Cairn Vedanta Deal: What is the problem?

For devaluating a currency Central bank of that country buy dollar(for example) with its domestic currency. As a result of which demand for dollar increases and consequently dollar's price vis-a-vis domestic currency increases (hence devaluation of domestic currency). In China Government is in a constant process of buying Dollar to keep yen constantly undervalued (this is the reason for their huge and constantly swelling foreign reserve). However In India this is not the case, in fact contrary to this RBI sold (I said sold not buy) dollars few months back (as a measure to curb inflation and stop rupee devaluation) as selling of dollar increased demand for Indian rupee and increased its price vis-a-vis to dollar.
If RBI decides to buy dollar in future than surely there will be a inflow of FDI in India also.
Sometimes swelling of foreign reserve is considered as a side effect of devaluation.

For devaluating a currency Central bank of that country buy dollar(for example) with its domestic currency. As a result of which demand for dollar increases and consequently dollar's price vis-a-vis domestic currency increases (hence devaluation of domestic currency). In China Government is in a constant process of buying Dollar (this is the reason for their huge and constantly swelling foreign reserve) and hence devaluating yen, However In India this is not the case, in fact contrary to this RBI sold (I said sold not buy) dollars few months back (as a measure to curb inflation and stop rupee devaluation) as selling of dollar increased demand for Indian rupee and increase its price vis-a-vis to dollar.
If RBI decides to buy dollar than surely there will be a inflow of FDI in India also.
Sometimes swelling of foreign reserve is considered as a side effect of devaluation.

Sorry ..... wrong post

indeed
but citizens pay those taxes from their salary and only a part of salary is given as tax so a major part is still left which is not given and govt only gets a share

so how does a govt employee gets his salary ?????

Apart from Direct and InDirect taxes a large part of revenue comes from Non-tax sources of revenue for example administrative receipts, net contribution of public sector undertaking, Railwats,Post and Telegraphs, Disinvestment of PSU , sale of 2G 3G 4G spectrum etc.

Regarding the news of Coal India(now,India's largest company by m-cap) I got to know-
"In 2010, CIL's IPO got subscribed 15.28 times, collecting a record over Rs 2,40,000 crore (Rs 2,400 billion) the highest IPO subscription so far."
That stimulates me to know more about IPO. Reading some stuffs I stumbled on-

1. What is underwriting?
   
2. Who decides the price of a unit of a stock during IPO ?? I mean, an issuer always should want to sell it in more price? Who becomes the intermediary to solve this?
   
3. If a PSU decides to disinvest 15% how this 15% is converted to a certain number of stocks??
   
4. What's the role of investment banking regarding IPO?
   
5. What does it mean by CIL's IPO got subscribed 15.28 times?? Does itthough n stocks were made public, 15 times stocks are in demand???
   
6. What are the other roles of Investment banking??
   

Some of my questions may be silly but I didn't get to know from anywhere.

What is underwriting?

Underwriting is guarantee given by a bank which means they have taken on the risk of distributing the securities. Should they not be able to find enough investors, they will have to hold some securities themselves. Underwriters make their income from the price difference (the "underwriting spread") between the price they pay the issuer and what they collect from investors or from broker-dealers who buy portions of the offering.

Who decides the price of a unit of a stock during IPO ?? I mean, an issuer always should want to sell it in more price? Who becomes the intermediary to solve this?

price of a unit of a stock during IPO can be decided by either of two methods i.e. Fixed price or Book Building. In Fixed price Book Running
Lead Manager (BRLM) make an assesment of company issuing IPO in terms of it's liablities,revenue and other factors and than fix a price for stock.However Book RunningLead Manager (BRLM) have to give a justification for the stock price to SEBI.
Book building is a process of price discovery. The issuer discloses a price band or floor price before opening of the issue of the securities offered. On the basis of the demands received at various price levels within the price band specified by the issuer, Book Running Lead Manager (BRLM) in close consultation with the issuer arrives at a price at which the
security offered by the issuer, can be issued.

If a PSU decides to disinvest 15% how this 15% is converted to a certain number of stocks??

Again if a company wish to issue fresh stock it has multiple option at it's disposal. These are
(a)Public issue
(i) Initial Public offer (IPO)
(ii) Further public offer (FPO)
(b) Rights issue
(d) Private placement
(i) Preferential issue
(ii) Qualified institutional placement

What's the role of investment banking regarding IPO?

Merchant Banker/Lead Manager(these are Investment bank basically) are responsible for All the activies related to launching of a fresh issue e.g. determination of security to be issued,drafting the prospectus,application forms,allotment letters,appointment of registrars for handling share application,making arrangment for underwritting,placement of share,selection and appointment of broker.

What does it mean by CIL's IPO got subscribed 15.28 times?? Does itthough n stocks were made public, 15 times stocks are in demand???
it means Number of shares subscribed are 15.28% more than Number of shares offered by company.

You gave me 100 Rs and I gave you a paper writing
This paper is bond.
Here you're most safe, because I'm bound to payback 100+20 Rupees.

You give me 100 Rs. and I gave you a paper
This is equity /share. Here the you get a share in the profit only if my company makes profit.
So this is tricky, you may get 5 Rs. a year or 50 Rs. a year depending on the profit I make, because you're a partner in crime

But if you give me 100 Rs. and I gave you a paper writing
this is debenture.
Here you're safer compared to equity, because you're assured of profit irrespective of company's performace.

As far as my understanding goes main difference between bond and debenture is the collateral .Bond is a type of debt with collateral(as it is issued by state/central/muncipal goverment). Debenture is debt without collateral i.e. If there is any bankruptcy, bondholders are paid first and the liability towards debenture holders is less.

Even Bonds can receive periodical payments depending upon it's type.

With convertible debentures we have an option to convert it into shares after a certain period of time.

Two trains move from station A and station B towards each other at the speed of 50 km/hr and 60 km/hr.At the meeting point,the driver of the second train felt that the train has covered 120 km more.What is the distance between A and B?

a)1320km
b)1100km
c)1200km
d)960km

pls do show the whole process.

Ratio of speed = 50:60
= 5:6
*ratio of distance covered will be same as ratio of speed(as time is same)
ratio of distance covered by each train = 5 : 6
6x - 5x = 120
x = 120
Total Distance = 5x + 6x
= 11*120
=1320

The average speed of a train is 20% less on the return journey than on the onward journey.The train halts for half an hour at the destination station before starting on the return journey.If the total time taken for the to and fro journey is 23 hours,covering a distance of 1000 km ,the speed of the train is

a)60 km/hr
b)40 km/hr
c)50 km/hr

pls expain with full approach.

Ratio of speed = 1 : 1.2
= 5 : 6
Time taken during journey = 23 - 1
= 22
Ratio of time taken(onward : return journey)
= > 5x + 6x = 22
=> x = 2
=> time taken is 10hr and 12hr
so speed = 500/10 = 50
* it's better to solve these kind of questions using ratio method. This way you won't even need a pen.