IILMGSM

Which category do these belong to: Viola, Gerbera, Gaznia, Larkspur?
Flowers

Name the American philosopher and constitutional law expert who died suffering from leukaemia.
Ronald Dworkin

Expand ICTT. (Hint: Container)
International Container Transshipment Terminal

Expand FCRA. (Hint: Contract)
Forward Contract Regulation Act

Expand FMC. (Hint: Markets)
Forward Markets Commission

Expand CTT. (Hint: Tax)
Commodity Transaction Tax

Which sporting event is planning to use biological profiling of players at 2013 Confederations Cup and 2014 World Cup?
FIFA

Which 2 companies have entered into a partnership to launch the Discovery Channel magazine?
Discovery Network’s Asia-Pacific and India Today Group

Name the channels launched by Cira Media targeting youths in India.
Clubbing TV, Juke Box, Rock TV and Dancetrippin

Which company has joined hands with Disney to launch tv channel in India?
Mahindra and Mahindra

Which mobile maker launched Bolt series phone As5 model recently?
Micromax

Which 2 companies announced $11 billion dollar merger deal to create world’s biggest airline?
American Airlines and US Airways

Name the architect whose iconic creations would be exhibited by Royal Institute of British Architects from 14th May to 4th September 2013.
Charles Correa

In which Middle East country online matchmaking creates a revolution?
Saudi Arabia

Expand MFIN. (Hint: Finance)
Micro Finance Institutions Network

Why was Mylan company in news recently?
Mylan entered into an agreement with Biocon to market insulin

Magma Advisory Services Ltd. recently purchased which company’s mortgage business?
GE Capital India

Infosys ADS was approved for listing and trading on which professional segment?
NYSE Euronext Paris

Name the children’s program which is nearing 1 billion views on Youtube after Ganganam style.
Sesame Street

Expand OBI. (Hint: Budget)
Open Budget Index

Which rank does India hold in terms of budget transparency according to Open Budget Survey 2012?
14th rank

Who is appointed as Sri Lanka’s Test and ODI captain for a period of 1 year?
Angelo Mathews

Inflation Indexed Bond a solution to GOLD RUSH and Inflation

Gold Rush

• Demand for gold has been rising worldwide
• gold prices in international market are calculated in US$. And these gold prices have doubled since 2008.
• India has traditionally been a major absorber of world gold.
• Gold has been a combination of investment tool and status symbol in India
• Gold imports are positively correlated with inflation. (meaning, if inflation increases then gold imports will definitely increase.)

Why do people invest in gold?

1. Share market is volatile (fluctuates a lot). And it doesn’t offer attractive return at the moment.
2. To invest in share market / mutual funds, you need PAN CARD + DEMAT Account. Many people still don’t have it. = With limited access to financial instruments, financial markets, especially in the rural areas.
3. Rural people don’t have awareness about Mutual funds, pension-provident funds etc.
4. Inflation is high. So the profit (return) offered on back savings, fixed deposits, pension-insurance funds = not attractive.
5. When you combine these factors: most people prefer to invest in gold / silver.

Thus, rising demand for gold is only a “symptom” of more fundamental problems in the economy (inflation, lack of financial awareness etc.)

• Anyways, what’s the big deal? let the people invest in gold, after all its their money!
• The big deal is, if people had invested money in banking / finance sector, then that money could be given to some needy businessmen, he’ll open / expand his factory = more employment + more production =good for economy.
• But if people just purchase gold/ silver = that money stops moving. It just sits in their locker = bad for economy.

Another problem => gold rush = high CAD.

Gold -Current Account Deficit (CAD)

• High CAD = bad, because it weakens the rupee.
• There are two main villains responsible for India’s current account deficit: 1) gold import 2) crude oil import.
• Given the energy requirements, we cannot stop / reduce the crude oil import, else it’ll badly affect economy.
• Then solution is obviously: reduce gold import. But how?

How to stop gold rush?

• One solution = increase duty on gold import. But problem is people will start smuggling. Then Government will not get any import duty at all.
• Therefore, Economy survey suggests following things:

1. Underlying motive for gold rush = high inflation. So first, Government should curb the inflation.
2. Second problem is lack of financial instruments available to the average citizen, especially in the rural areas. (they don’t have PAN card, DEMAT account or knowledge  of how to invest in sharemarket/ mutual funds etc.). So Government should take initiatives to increase the financial awareness, financial inclusion.
3. Government should introduce inflation indexed bonds. (then it is more attractive to invest in bonds, otherwise 9% return is not good, if there is 11% inflation!)

Inflation indexed bonds

• Normal “bonds” work in this fashion: 10%, 2017
• Meaning you give me Rs.100 right now. I’ll pay you Rs.10 as interest every year until 2017 and then I’ll return the principle (Rs.100).
• Ok but what if there get so high inflation in 2017 that even cheapest ballpoint pen costs Rs.500! Then getting back the Rs.100 principle hardly benefits you. Because of this reason, nowadays people prefer to invest in gold rather than in shares/ bonds/ mutual funds etc.
• But in “inflation indexed bonds”, the principle is linked with Inflation index. So, if from 2013 to 2017, inflation increased by 30% then you get 30% more principle (=100 original + 30) =Rs.130. this is good because your investment is protected from inflation.
  
  
  Submitted by Gagandeep Singh Karwar PGDM 12-14 ,
  IILM CLAIRVOYANCE (blog of IILM GSM)

IILGSM

Current Affairs

1. The Sultan Azlan Shah Cup is related with Hockey.

2. The Elephanta Festival is organized by Maharashtra.

3. Online Shopping portal Snapdeal.com has tied with Mahindra n Mahindra to sell its two wheelers.

4. The first lady Michelle Obama and the secretary of state John Kerry will present the “International Women Courage Award” to Delhi victim.

5. Services defeat Kerala to 67th Santosh Trophy Football Tournament.

     

Some useful terms for non-finance students

Balance sheet:- It is the statement of assets and liabilities, i.e., financial position of an enterprise at a given date. It is also known as Position Statement.


Profit and Loss Accountts:- it shows the net result of business operations during an accounting period. It is also known as Income Statement.


Financial Statements:- “The Financial Statements provide a summary of accounts of a business enterprise, the Balance Sheet the assets, liabilities and capital as on a certain date and income statement showing the results and operations during a certain period.”

                                                                                                                                  John N. Myer


Cash Flow Staement:- A Cash Flow Statement is a statement showing the flow of cash-- inflow and outflow, during an accounting period. It is an essential tool for short-term financial analysis.

IILMGSM

Current Affairs

1. Delhi become the first state in the country to ban manual scavenging.

2. Sugata Mitra wins million dollar TED prize for Extraordinary Creativity for his building the schools in the internet.

3. India to have first public sector Women Bank by the end of 2013.

4. "Kamal Nath" to lead the Indian team in the World Economic Forum annual summit in Davos, Switzerland.

5. K. G. Balakrishnan is the current Chairperson of National Human Rights Commission.

6. P. Chidambaram is the current Union Finance Minister.

7. Special AC luxury class announced by Railway Minister and named B_AnubhutiB coaches.

8. Delhi placed lowest in pollution survey by Planning Commission.

9. Every year February 28 is celebrated as the National Science Day.

10. ISRO scientists successfully launch Indo-French satellite PSLV-SARAL.

11. Park Geun-hye sworn in as South Korea first woman President. 

12. the Vatican announced that the pope Benedict xvi will be known as "emertius pope".

13. Pawan Kumar Bansal is the current Union Railway Minister of India.

14. ISRO is set to launch the world first smartphone controlled Nano satellite with a definition camera.

15. February 21 is celebrated as International Mother Language Day.