hi, plz help,how to reach this place
ION DIGITAL ZONE IDZ HARAHUWA CHAURAHA S R PLATINUM ENGLISH SCHOOL HARAHUWA CHAURAHA PANCHKOSHI MARG VARANASI
Can someone plz explain me Liquid Adjustment facility and MSF...in simple words
Impact of BREXIT on Indian economy in simple words. Brexit is the withdrawal of UK(United Kingdom) from the European Union (UN). In the month of June the polls were out, 52% voted to leave and 48% voted to remain. When it comes to its impact on Indian economy, there will be no immediate effect as it will take time for UK to officially break all the ties with the EU. Indian stock and currency market show some turbulence, which may prevail for some days. According to Finance Minister Arun Jaitly, the impact in india will not last beyond a few weeks. He further added that India has avoided any adverse impact of brexit and emerged as a safe haven for investors around the world. RBI and the market regulator SEBI are keeping a constant vigil on the global developments in a view to protect interests of investors. Rupee depreciated against US dollar by around 1% for one day post-brexit referendum while currencies of other emerging markets depreciated for many days. Besides SENSEX fell by 2% only on one day while the equity index of other countries fell by a higher percentage and for many days. By virtue of its domestic policies, India is seen as a haven of stability and opportunity even in these turbulent times. Besides, IMF has also revised downward its forecast of global growth from 3.2% to 3.1% as the aftermath of brexit and warned of its repercussions for global economy. However, these potential effects on India's growth could be offset by the weaker oil prices which will help maintain macro stability and by the likelihood of more policy support from the advanced economies. The impact of brexit on trade, if any, in medium term would also depend on the bilateral trade negotiations that will determine India's future access to these countries. Good luck
What is the last date of current affairs that we can expect? 20 July??
Minimum marks to be aquired in mains objective( without descriptive) to get selected . Any one want to share their traget u r welcum .( last year arround 120 ).
- 135
- 130
- 125
- 145+
- 140
0 voters
Acc to Prac mock , how can we decide what base to take among the answers present . I mean by what we should divide with 2 or 3 base
@mamamama India Ranking list :
MANUFACTURER'S INDEX (UNIDO REPORT) 6TH
GLOBAL CONECTIVITY INDEX 44TH
FUTURE READY CITIES (NEW DELHI) 44TH(OUT OF 50 NATIONS)
WORLD PRESS FREEDOM INDEX 133RD
FDI INTELLIGENCE REPORT -TOP FDI DESINATION 1ST
MULTI COMMODITY EXCHANGE (MCX - SILVER) 1ST
(MCX-NATURAL GAS) 2ND
(MCX- CRUDE OIL AND GOLD FUTURES) 3RD
GOOD COUNTRY INDEX 70TH
EASE OF DOING BUSINESS(GRD INDEX) 2ND
MALWARE INFECTION INDEX 8TH
OIL CONSUMER RANKING (4.1MILLION BALES/DAY) 3RD
FDI INFLOW (UNCTAD REPORT) - 44BN 10TH
HUMAN CAPITAL INDEX (WEF REPORT) 105TH
LOGISTICS PERFORMANCE REPORT(WB) 35TH
NETWORK READINESS INDEX(WEF) 91ST
PUYS standard instruction again : if any addition / alteration is to be done , please feel free to point out ...it'll help all
Part 1. PM foreign visit
Jai ho REASONING BABA...mja aayega passage type puzzle banane m.
Part 2
Genral Walo Agar Selection chahiye To Top 3000 me target karo
Mukhtar Abbas naqvi constituency?
Kisi ne TestBook k Mocks diye kya.?
Part 3
Will probability comes for SBI PO MAINS ?
Sm1 posted a link for descriptive test.. Cant find it.. Can sm1 plz repost it again
correct?
GDP GROWTH:16-17
UN - 7.3 %
Stanchart-7.4%
IMF -7.5% trimmed to 7.4%
OECD -7.5%
MOODY'- 7.5%
RBI - 7.6%
WB - 7.6%
CSO - 7.6%
FITCH - 7.7%
FICCI - 7.7%
ICRA - 7.7%
ADB - 7.8% trimmed to 7.4%
Nomura - 7.8%
DBS - 7.8%
CRISIL - 7.9%
PHD Chambers - 8%
CII - 8%
Naresh borrowed ₹28000 from a bank at simple interest. After three years he returned ₹12000 to the bank and two years later he returned ₹21800 and cleared the dues of the bank. Find the rate of interest charged by the bank.
Best way to understand 2008 financial crisis.
(Though not the right time, but you may save it and use later. I found it worth to share as it may help you during interviews)
The 2008 financial crisis was just a pass the parcel game, the only difference being that the parcel was a financial time bomb that would take everyone down once it exploded. And that is exactly what happened.
So, who were the participants in this game?
- The general public (the innocent entity in the game, oblivious to the perils involved)
- The banks (your local, boring commercial banks)
- The investment banks - Merrill Lynch, Lehman Brothers and others
- The investment companies (another largely innocent entity in the game)
- The insurance companies - American International Group (AIG) and others
What role does each of this entity normally play in an economy?
- The general public deposit their savings in the banks and borrow from the banks. They also invest money in the products sold by the investment companies (Mutual Funds, Hedge Funds, Pension Plans, etc) and buy insurance from insurance companies.
- The banks accept deposits and give away loans (home loans, car loans, personal loans, corporate loans, etc).
- The investment companies pool money from investors (the public and the corporate houses) through their products (Mutual Funds, Hedge Funds, Pension Plans, etc), invest that money in the financial market (shares, bonds, etc) and share the yield with their investors.
- The investment bankers link the investment companies to the banks and other corporate houses.
- Insurance companies insures anyone who wants to insure something, in return for a premium.
When acting individually and under strict regulations, these entities are pretty harmless, or in fact, quite useful for the growth of the economy. But in the early 2000s they began this dirty game of theirs that ultimately threw the entire global economy into disarray.
What was the "game"? How did it all begin?
House Loans.
The game was all about housing loans. Under normal circumstances, a family that desires to buy a new house approaches a commercial bank for a loan. The bank verifies the application, sees if the family has the capacity to repay and a clear past record, and sanctions the loan (a.k.a mortgage) The family repays the loan over a period of time and if it fails to repay, the bank acquires the mortgaged house and the family is kicked out. The bank sells/auctions the house and recovers its dues.
So far so good.
But in the early 2000s, the investment banks and the investment companies were sitting on a huge pile of idle cash. The economy was dull and they had few opportunities to make big money. But the mainstream commercial banks were doing pretty fine, 'coz the housing market is never really down (houses are always needed man!). The investment bankers thought why not join the banks in the real estate world and make use of their idle money to make...umm...more money!
The investment banks asked the commercial banks to sell them their mortgage loans.
Now why would banks "sell their loans" to someone?
Suppose, a mortgage loan is worth $500,000 with 10% simple interest to be paid over 10 years. Thus, at the end of 10 years, the bank gets $550,00 from the borrower. The investment banker instead offers that the bank transfer (or "sell") this mortgage loan to the investment bank for, say, $530,000.
Why would the bank sell the mortgage at $530,000 to the investment bank when it is supposed to get $550,000 from the borrower himself?
There is something called the time value of money. '$530,000 right now' is a lot better than '$550,000 after 10 years'. It is, therefore, in the interest of the bank to accept the investment banker's offer, which it eventually does.
So the mortgage gets transferred to the investment bank. It's now the investment bank that recieves regular payments (loan repayment) from the home owners (i.e borrowers), or acquires the house in case of a default.
Now we come to the next player - the investment companies, that were sitting on a pile of idle cash too and were looking for investment avenues as well. As mentioned earlier, the job of the investment bankers is to link the investment companies to investment opportunities. The investment bankers called up the investment companies -
Invsmt Banker: "Hey bro, we have some new investment opportunities, wanna try them?"
Invsmt Co.: "Sure, why not? What are they?"
Invsmt Banker: "They are called...ummmmm... Collateralized Debt Obligations"
Invsmt Co.: "Colled.....what? Never heard of them"
Invsmt Banker: "Collateralized Debt Obligation.. They are cool man, just try them"
Invsmt Co.: "Are the returns good enough and the investment safe?"
Invsmt Banker: "Of course bro, they have got AAA ratings"
Investment Co.: "Great! Send them over then"
*end of conversation*
And with this, the investment bankers passed on their mortgage loans to the investment companies in the guise of the fancy sounding thing called Collateralized Debt Obligation (CDOs).
The dirty game begins here.
To keep making more and more money, the investment banks need more and more mortgage loans and for that, the commercial banks need to give away more and more home loans. But there is an obvious limit to the number of well-to-do citizens in an economy who can be extended a loan. You cannot lend to anyone and everyone, lest they default. But the commercial banks thought, "Hey, why do we care? Once we sanction a loan we pass it on to the investment banks. It becomes their headache thereafter". Even the investment banks would think on similar lines ("We anyway gonna pass the mortgage to the investment companies as CDOs, so why bother?").
With this, started the phenomenon of SUB-PRIME LENDING i.e giving away loans to "sub prime" customers (customers who didn't really have the ability and/or the will to repay the loan).
And if that was not enough, even the insurance companies (our 5th player) jumped into the muck.
They introduced a new insurance product with, again, a fancy name - Credit Default Swap (CDS). But these were less of an insurance product and more of abetting instrument. Just like you put a bet on a horse in a derby race or on a team in a football match, CDS were tools to allow you to bet on home owners (borrowers). You think Mr. Donald has no capacity to repay the loan upon which he bought that new house recently? You just bet on this via CDS. If Mr. Donald ultimately fails to repay his loan, you win the bet?
Appalling, isn't it? But there's more to come....
Soon, the investment bankers themselves became the biggest betters! They started betting against home owners; those home owners whose mortgage they were themselves holding!! Which means, they knew that the mortgages that they are holding are risky and low-worth. But why would they care? They were ultimately passing those mortgages on to the investment companies as Collateralized Debt Obligations!
The bomb was up and ticking.
(Pardon the crude look of the doodle. I did not have access to fancier tools)
By 2008, home owners started defaulting enmasse. The betters were winning and the betting company (actually the insurance company) losing. The American International Group (AIG), the biggest insurance company involved in this, was on the verge of collapse in August 2008. It had to be rescued by the US government. [U.S. to Take Over AIG in $85 Billion Bailout]. The general public that had bought other insurance products from AIG suffered too.
With home owners defaulting in bulk, the mortgages held by investment banks and CDOs held by investment companies became worthless. On September 15, 2008, investment bank Lehman Brothers crashes and so does the stock market [Crash! Shares tumble as Lehman Brothers collapses and fears grow]. And that entailed theBanking Collapse of 2008...........
The 2008 financial crisis was just a pass the parcel game, the only difference being that the parcel was a financial time bomb that would take everyone down once it exploded. And that is exactly what happened.
So, who were the participants in this game?
- The general public (the innocent entity in the game, oblivious to the perils involved)
- The banks (your local, boring commercial banks)
- The investment banks - Merrill Lynch, Lehman Brothers and others
- The investment companies (another largely innocent entity in the game)
- The insurance companies - American International Group (AIG) and others
What role does each of this entity normally play in an economy?
- The general public deposit their savings in the banks and borrow from the banks. They also invest money in the products sold by the investment companies (Mutual Funds, Hedge Funds, Pension Plans, etc) and buy insurance from insurance companies.
- The banks accept deposits and give away loans (home loans, car loans, personal loans, corporate loans, etc).
- The investment companies pool money from investors (the public and the corporate houses) through their products (Mutual Funds, Hedge Funds, Pension Plans, etc), invest that money in the financial market (shares, bonds, etc) and share the yield with their investors.
- The investment bankers link the investment companies to the banks and other corporate houses.
- Insurance companies insures anyone who wants to insure something, in return for a premium.
When acting individually and under strict regulations, these entities are pretty harmless, or in fact, quite useful for the growth of the economy. But in the early 2000s they began this dirty game of theirs that ultimately threw the entire global economy into disarray.
What was the "game"? How did it all begin?
House Loans.
The game was all about housing loans. Under normal circumstances, a family that desires to buy a new house approaches a commercial bank for a loan. The bank verifies the application, sees if the family has the capacity to repay and a clear past record, and sanctions the loan (a.k.a mortgage) The family repays the loan over a period of time and if it fails to repay, the bank acquires the mortgaged house and the family is kicked out. The bank sells/auctions the house and recovers its dues.
So far so good.
But in the early 2000s, the investment banks and the investment companies were sitting on a huge pile of idle cash. The economy was dull and they had few opportunities to make big money. But the mainstream commercial banks were doing pretty fine, 'coz the housing market is never really down (houses are always needed man!). The investment bankers thought why not join the banks in the real estate world and make use of their idle money to make...umm...more money!
The investment banks asked the commercial banks to sell them their mortgage loans.
Now why would banks "sell their loans" to someone?
Suppose, a mortgage loan is worth $500,000 with 10% simple interest to be paid over 10 years. Thus, at the end of 10 years, the bank gets $550,00 from the borrower. The investment banker instead offers that the bank transfer (or "sell") this mortgage loan to the investment bank for, say, $530,000.
Why would the bank sell the mortgage at $530,000 to the investment bank when it is supposed to get $550,000 from the borrower himself?
There is something called the time value of money. '$530,000 right now' is a lot better than '$550,000 after 10 years'. It is, therefore, in the interest of the bank to accept the investment banker's offer, which it eventually does.
So the mortgage gets transferred to the investment bank. It's now the investment bank that recieves regular payments (loan repayment) from the home owners (i.e borrowers), or acquires the house in case of a default.
Now we come to the next player - the investment companies, that were sitting on a pile of idle cash too and were looking for investment avenues as well. As mentioned earlier, the job of the investment bankers is to link the investment companies to investment opportunities. The investment bankers called up the investment companies -
Invsmt Banker: "Hey bro, we have some new investment opportunities, wanna try them?"
Invsmt Co.: "Sure, why not? What are they?"
Invsmt Banker: "They are called...ummmmm... Collateralized Debt Obligations"
Invsmt Co.: "Colled.....what? Never heard of them"
Invsmt Banker: "Collateralized Debt Obligation.. They are cool man, just try them"
Invsmt Co.: "Are the returns good enough and the investment safe?"
Invsmt Banker: "Of course bro, they have got AAA ratings"
Investment Co.: "Great! Send them over then"
*end of conversation*
And with this, the investment bankers passed on their mortgage loans to the investment companies in the guise of the fancy sounding thing called Collateralized Debt Obligation (CDOs).
The dirty game begins here.
To keep making more and more money, the investment banks need more and more mortgage loans and for that, the commercial banks need to give away more and more home loans. But there is an obvious limit to the number of well-to-do citizens in an economy who can be extended a loan. You cannot lend to anyone and everyone, lest they default. But the commercial banks thought, "Hey, why do we care? Once we sanction a loan we pass it on to the investment banks. It becomes their headache thereafter". Even the investment banks would think on similar lines ("We anyway gonna pass the mortgage to the investment companies as CDOs, so why bother?").
With this, started the phenomenon of SUB-PRIME LENDING i.e giving away loans to "sub prime" customers (customers who didn't really have the ability and/or the will to repay the loan).
And if that was not enough, even the insurance companies (our 5th player) jumped into the muck.
They introduced a new insurance product with, again, a fancy name - Credit Default Swap (CDS). But these were less of an insurance product and more of abetting instrument. Just like you put a bet on a horse in a derby race or on a team in a football match, CDS were tools to allow you to bet on home owners (borrowers). You think Mr. Donald has no capacity to repay the loan upon which he bought that new house recently? You just bet on this via CDS. If Mr. Donald ultimately fails to repay his loan, you win the bet?
Appalling, isn't it? But there's more to come....
Soon, the investment bankers themselves became the biggest betters! They started betting against home owners; those home owners whose mortgage they were themselves holding!! Which means, they knew that the mortgages that they are holding are risky and low-worth. But why would they care? They were ultimately passing those mortgages on to the investment companies as Collateralized Debt Obligations!
The bomb was up and ticking.
By 2008, home owners started defaulting enmasse. The betters were winning and the betting company (actually the insurance company) losing. The American International Group (AIG), the biggest insurance company involved in this, was on the verge of collapse in August 2008. It had to be rescued by the US government. [U.S. to Take Over AIG in $85 Billion Bailout]. The general public that had bought other insurance products from AIG suffered too.
With home owners defaulting in bulk, the mortgages held by investment banks and CDOs held by investment companies became worthless. On September 15, 2008, investment bank Lehman Brothers crashes and so does the stock market, and that entailed the Banking Collapse of 2008.
By - Alqama Parvez.
RBI Grade B.