Finxpress nov 14th

FinXpress November 15th, 2016

A FinNiche Initiative

EDITORIAL

- PRANAV GOYAL

Last few days have been full of Undulations for people across the world with Demonetization creating chaos among Indians and Donald trump becoming president creating variegated responses across the world. The stock markets have been fizzy with Sensex opening with a drop of 1689 points on Wednesday but also recovering 1351 points on the very same day. At IMT as well, last few days have been full of workshops and competitions with the unfolding of Marketing World Cup, the flagship marketing event @IMT. Club FinNiche has organized a 3 day workshop with ICICI Direct on Pillars of Equity Investment which began on Sunday and is providing exposure to the students about the Valuation and Equity research models. It is also helping students to learn about stock market trading by providing them with a Virtual trading platform for 12 months. At FinNiche, We make you rest assured that this journey will go on with a much higher pace with many important events lined up in November and December. To give you a good heads up to important events that happened around the globe in the past few weeks, we have come up with another edition of FinXpress. In this edition, we are covering a wide array of articles. In International section, we have an article on U.S Presidential elections as well as China’s debt pile and impact on world economy. On National front, we have articles on GST rates being finalized and the Demonetization of Rs. 500 and Rs. 1000 notes. We will also be covering FinApp describing the application on GST developments.

Club FinNiche welcomes any comment, suggestions or Criticism regarding the magazine. Please do write to us and share your ideas.

Happy Reading!

Editorial Team Club FinNiche

Page 1

CONTENTS Currency Ban

2

GST Tax Rates Finalized 4 Donald Trump: The Financial Implications 7 China’s Debt Pile & its Impact on World Economy 9 Fin-Humour

12

Market

13

Start-up Tracker

14

Fin-App

15

Fin-Word

16

Did you know

17

Fin-Quiz

18

Life @ IMT

20

Sponsors

21

NATIONAL

Currency Ban

- SHUBHAM ARORA

Demonetisation —— Effect on Equity Market —— Inflation and policy Implications —— Exchange Rates —— Longer Term Implications

The government has taken one of the most significant reform in its tenure. While this expeditious move will boldly counter the problem of black money and parallel economy but this might have counter effect on the economy. Most of the macroeconomic impact will be felt in the short term though there are larger implications in the long term.

What are the short term impacts of this action?

There will be disruption in the liquidity of the economy for the shorter period of time as it will take some time to get the currency exchanged and bring the new currency in circulation. Commodity transaction and the general cash market is going to see the immediate impact.

Unorganized sector is going to have the major impact of this change as most of the transactions in unorganized sector happens through cash. Most of the kiryana stores, general stores, roadside vendors etc. have already stopped accepting 500 and 1000 notes.it is important to note that

significant percentage of workforce working in this sector is going to have negative impact of this action and it is further going to impact their disposable income also.

It is estimated that there can be negative impact on the Indian GDP in the short run as the consumption in the economy is going to reduce a bit. However quantum and degree of the impact cannot be ascertained.

How are Equity Markets going to be effected?

Till now market has reacted negatively to the news of banning of notes but markets will recover in the medium term as the uncertainty about the impacts will ease out a bit. While there are chances of some negative impact in the long term also as some sectors (having relation with the unorganized sector) of the economy are going to have the negative impact of this action but on the other hand sector having linkage with e-commerce and fintech could. So in long run overall impact seems positive.

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NATIONAL

How could be some of the sectoral impacts?

While the sectors having linkage with the unorganized sector are going to have a little negative impact due to sudden decrease in consumption propensity of people but the sectors related to e-commerce and fintech are going to have a positive impact. On a sectoral basisagricultural, commodities, consumer durable and non-durables are going to feel the heat. Moreover as most of the transaction will be made electronically, this is going to impact the retail outlets adversely. The real estate is going to see a negative impact in the medium and the long term particularly in repurchase market. Along with the real estate luxury market is also going to get impacted negatively. All these are going to get impacted negatively because of reduction of the real money in the hands of people.

On the positive side, business in fintech sector such as payment banks, wallet providers such as payment banks, mobile wallets and electronic transfer providers are going to see a boost as most of the transactions will happen through them now onwards.

POSITIVES  Payment gateways  Cards  Mobile wallets  Online retail  Net and payment banks  E-market place NEGATIVES  Agriculture  Luxury goods  Real estates  Commodities  Traditional retails

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Consumer durables Consumer non-durable

Will Exchange rates be affected?

We could see some negative impact of this action on the exchange rate as the currency in circulation will decrease but RBI is monitoring and will take remedial action to control this. Also the negative impact of this on international trade cannot be ignored as it will also cause the currency to depreciate but counter moves of the government are expected to ease out the situation.

Will there be an effect on inflation and what are the policy implications for it?

We are likely to see some decline in inflationary pressures as demand along with household inflation expectations are likely to go down. This would make RBI more comfortable on managing inflation in the future increasing the possibility of rate cuts in the future.

What are some of the longer term implications?

This essentially represents a change in regime for the real and financial economy. Domestically, there could be some turmoil as the effect will be disproportionately felt by the lower and upper income classes. Internationally, the government is likely to get a thumbs up for the move and more countries could potentially see this as a viable option to curb black money and stem illegal financial activity.

Lastly, though this move by the government may not be a first (having being tried by earlier governments as a tool to fight corruption), such an action achieves larger significance for a globally connected India as it shows boldness in tackling an issue which has remained a thorn in the growth success story of this generation.

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NATIONAL

GST Tax Rates Finalized

- SAMARTH AGARWAL

New GST tax brackets —— Current tax structure —— Expected benefits to corporates —— Impact on Economy

The GST council has agreed to a four-rate structure with the following slabs: 5%, 12%, 18% and 28% which is largely aimed at achieving tax revenue neutrality. Two additional brackets have also been created- zero rating for basic groceries (cereals etc.) and a cess for luxury and sin products (high end SUVs, cigarettes, etc.). The cess will be renewed every year and will have a sunset clause of five years and along with other kinds of cess like environmental/clean-energy cess will be a part of a pool which will be use to compensate the states. These proposed slabs are different from earlier expectations of single tax rate (~18-20%) for majority of goods and services.

Services (12% and 18% GST rates): Current tax rate is at 15%; certain services (transport, airline, restaurants) enjoy abatement and these services would fall under the 12% GST category while others would come under 18%. Both 12% and 18% GST rates for services are on the higher side; the silver lining is in the credit set‐off that would become available.

Current Tax Structure: The average effective tax rate on consumption as measured by the Consumer Price Index (CPI) is 10.4%. However, if one excludes certain categories like alcohol and petroleum products the tax rate drops to 7%. In fact, there are many categories which are either exempt or taxed at Detailed item wise list of tax rate is awaited, what very low rates. As per Arvind Subramanian we know as of now is: committee, 75% of CPI basket is exempt from 0% Rate‐ Exempted list (essential items under the excise and 47% is exempt from sales tax. current list). These items will mostly not be able to avail tax credit.

Guiding Principles Considered by The Council for 5% GST Rate – Most products currently liable at Deciding Tax Rates: 5% would continue under this category.  It should not be inflationary 12% GST Rate – Standard rate. Products that will  Not regressive in nature and protects states and fall under this category are ones that currently center's current revenues attract an excise duty of 6% and additional VAT  Overall tax burden on consumers should reduce (pharma, readymade garments, food products).  To the extent possible, tax rates under GST 18% GST Rate – Standard rate. Most of the should be closer to the current effective tax rate products are expected to fall under this category.  Revenue from levy of cess will be utilized for 28% GST Rate – As per the Finance Minister, compensation to the states most white goods could come under this category.  Items of mass consumption should not be taxed Sin items like aerated drinks, tobacco, cigarettes, at higher rate, while items consumed by rich/ and luxury cars would be taxed at 28% + cess; tax upper middle classes should continue to be incidence is likely to be the same as the currently taxed at higher rates prevailing structure.

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NATIONAL

What Was the Expected Benefits to The Corporates?

Three main benefits to corporate had been cited from the implementation of GST – 1) Pricing benefits due to possible lower rates of taxation 2) Greater ease of doing business because streamlining of logistics, administrative and warehousing costs and 3) Incentivizing the shift from unorganized to organized sector.

While the pricing benefits remain unclear at this stage what is important to highlight is that consumers and ultimately the economy will benefit from lower logistics and admin costs and greater tax compliance. As one of the state FMs put it the entire exercise has been conducted with the motive of "revenue, inflation and distribution neutrality". Overall the weighted average rate is likely to be 22%.

Compensation to States: There has been no change in compensation amount to states from what was indicated earlier

at Rs 500bn to start with and then growing at 14% p.a. Leaving aside loss from production to consumption, just the abolition of CST, Octroy and Entertainment taxes imply a loss of Rs441bn to states in FY16 (Government estimate Rs500bn in first year of implementation of GST). These losses must be compensated for a period of 5 years and at a CAGR of 14% p.a. Cess will be levied on four items, which will be used to compensate the states for the revenue loss. These items are: aerated drinks, pan masala, tobacco products and luxury cars. Additionally, cess on coal will be used to fund the compensation to states. The cess and rate structure will ensure that the compensation to states is fiscally neutral and thus it may be raised in case the amount fall short of the required compensation. The cess will be reviewed on a yearly basis. Council further clarified that levy of cess will be capped to the extent of tax differential between current tax rates (all inclusive) and peak GST rate of 28%, implying that overall tax levy will be maintained at existing levels.

Source: Indian Express

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NATIONAL

Impact on Economy: There will be two standard rates – 12% & 18%.

So, few services would fall in 12% service tax slab while majority would move to 18% slab from the prevailing rate of 15%. Higher Service Tax would definitely fuel inflation through price rise assuming it is passed on to the consumers along with denting the pocket of the consumers who would be left with lower disposable income. The council has also announced that essential items including food, which presently constitute roughly 50% of the CPI would be taxed at zero rate.

Hence, it is difficult to quantify the impact on inflation unless the detailed list is out.

Key Sectoral impact:  Reduced tax incidence on mass consumer goods (from current 21-30% to 18%) is expected to be positive for personal care products & consumer durables/electricals.  GST council has proposed to levy cess on Tobacco products in addition to peak rate of 28%. While the endeavor is to not impose

additional tax burden on consumers, it also remarked on tobacco bearing a tax rate of 65%.

This rate appears currently is 10ppt higher vs what the present levy seems to be. 

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Levy of peak rate (28%) on passenger vehicles (other than luxury vehicles) relative to earlier expectations of standard rate (18%) was a negative surprise.

GST council did not clarify on tax rate to be levied and continuation of abatement provisions (especially in aviation, construction services etc.) for service sector under GST regime. Levy of 18% standard rate on services like Telecom (currently taxed at 15%) will be negative.

GST rate on precious metals like Gold (Jewellery) has not yet been finalized.

However, the council suggested that the rate will be dependent upon quantum of revenue deficit arising post product/service wise finalization of GST rates

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INTERNATIONAL

Donald Trump: The Financial Implications

- UTKARSH SUREKA

Increase & infrastructure and military expenditure along with tax reduction bound to cause fiscal deficits —— Anti-Mexican attitude leads to fall in M. Peso —— Possibility of shelving of Obamacare leads to hit the stocks of pharma companies

What many considered impossible has happened, Donald John Trump Sr., has beaten all odds to become the 45th President of the United States of America. Trump, a real estate magnet, is the president of the principal holding company for all his real estate ventures and other business interests. Ranked 324th on the Forbes list of billionaires, Trump’s business interests range from office towers to hotels to casinos. He even has his own brand of steaks.

Trump, a true-blue Republican, has built his campaign on three primary pillars. His primary political agenda, as per his campaign has been bringing jobs back to the USA, controlling illegal immigration, and a very strong stance on

terrorism. His Fiscal policies, on the other hand are primarily reducing taxes, improving infrastructure and finally increasing expenditure on defense, thus making ‘America Great Again’.

However, an analysis of these policies shows that making America great again will not be as easy for President-Elect Trump, as he claims.

The most obvious result of his three-fold fiscal policy is deficit. Infrastructure and defense are the heaviest expenditures that most administrations face in any nation. And increasing expenditure on both while cutting taxes is like opening the outlets of a dam while curbing the inflow in the reservoir. The water level is bound to drop.

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INTERNATIONAL

Controlling immigration, especially from Mexico, will have a huge effect on the American labor force. America depends heavily on the Mexican immigrants for cheap labor. Menial jobs are mostly performed by the Mexican immigrants. If Trump succeeds in his endeavor to curb immigration from Mexico, it will lead to a reduction in the supply of cheap labor in America. Another implication of Trump’s victory has been a depreciation of the Mexican Peso, with the USD gaining close to 12% against the peso, the biggest drop in the peso since its devaluation in 1994-95.

This is due to the Trump’s anti-immigration policies and his vow to scrap the North American Free Trade Agreement (NAFTA) which favors Mexico greatly.

Another implication of Trump’s election as the President is the rise in the prices of the stocks of arms and ammunition manufacturers. Trump has constantly claimed that he will do everything in his power to bringing back America’s military might, which, he believes is the key to regaining

the superiority that America had over the rest of the Nations of the world. A rise in the future demands is expected and thus, the prices of arms and ammunitions manufacturers stocks have risen.

Obamacare is expected to be shelved and thus the prices of the stocks of pharmaceutical companies have taken a hit. The prices of the stocks of alternate power and fuel companies have also taken a hit because the President Elect does not believe in the contribution of conventional fuels in global warming and climate change.

Thus, we can see that Trumps victory has left everyone guessing. From claiming to build a wall at the Mexican border to carpet bombing ISIS, Trump has done it all. This election has left everyone guessing as to what the real estate magnet has in mind for the country. No one knows if his vision of a great America will be in tunes with the time when countries have started to think about the whole world rather than only about its own citizens.

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INTERNATIONAL

China’s Debt Pile & its Impact on World Economy Dragon and the debt pile —— Drop in the stock market —— Lowering demand in domestic market

China which is the second biggest economy by GDP nominal value and 1st by GDP PPP (purchasing power parity), has always been the talk of all business conventions in the times of crisis as well as boom. The efficiency of its economy was so good that it successfully defied even the global credit crisis of 2008-09, from which no country remained untouched. The gross domestic product was growing at 10.6 % in 2010 and so it was the talk of annual Davos Economic conference in 2011. Suddenly, it started losing its sheen which can be attributed to various reasons, such as decreasing exports,

- SRIKANT SINGH

lies in the asset bubbles which are unhealthy and people are worried due to the rapidity at which they disappear like last year’s stock market boom and bust. This sudden flood of asset bubbles which are also called as ‘Asset Atrial Fibrillation’ are often followed by economic trouble especially in developing economies like China. The root problem lies in China’s huge reliance on mindless monetary stimulus since 2008 to strengthen its way to continued output growth which has led to surge of debt levels comprising mainly corporate borrowings. Per a finance expert of China, its debt load has

Source: China Query

Source: National Bureau of Statistics of China

E= Estimate, *Includes household, corporate & Government debt. All figures based on year end or Sep 2016 RMB/USD exchange rate.

and has been expanding by only 6.7% for the 1st three quarters of this year. This, in fact, is going through its worst phase in last 25 years with the growth rate of 6.7% which itself is inflated as per many economists across the world. The pain

expanded from 150% of GDP before the onset of the 2008 global crisis to about 300% currently which means $30 trillion of debt over a $10 trillion economy. The load can increase to 330% by next year.

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INTERNATIONAL

PROBLEMS AHEAD FOR CHINA AND THE WORLD: Charlene Chu, a well-known and respected Chinese credit analyst, who works at the research shop Autonomous Research Asia estimates that about 22% of this debt pile will be nonperforming by year end which is almost $6.6 trillion and even after the recoveries, the actual losses will remain at $4 trillion. The new credit

Although it has improved in the U.S. with lenders tightening their credit standards and repaired balance sheets but China seems to have taken no lesson from it. The path of massive debt and then deleveraging wherein one reduces his debt by rapidly selling his assets can lead to business bankruptcies, unemployment and negative economic growth. Most of the economists Source: Thomson Reuters

infusions are growing at twice the pace of GDP growth which itself is an indicator of the big roadblock in the growth ahead. If we look at the capital-efficiency ratio, or the number of Yuan of new credit it takes to produce one Yuan of GDP growth, we can realize the pace of the piling of debt. In June, Torsten Slok, chief international economist at Deutsche Bank securities, published a chart showing that China’s credit bubble exceeded even that of the U.S. in 2007, on the cusp of the subprime mortgage meltdown that set off the global credit crisis. According to him, in 2015 it took more than $450 billion in bank credit to produce one percentage point of GDP growth in China. In the U.S., it took $350 billion to produce one percentage point of GDP growth at peak inefficiency in 2007. In 2008, the level of credit needed was half the number it was in 2015.

worldwide who are studying this trend opine that China is the biggest risk. A report by Bank for International settlements warned that with China’s banking system credit blasting off in the 1st quarter to a level 30 percentage points above long run trend levels, even a 10 percentage point deviation can be reliable early warning indicator of banking crisis or severe distress and the trouble typically arrives in next 3 years. In the summer of 2015, Chinese stock markets dropped by almost 50% in a matter of months after government cheerleading and heavy buying on margin drove prices to unimaginable heights which in turn shook the international markets. The monetary stimulus to drive growth can’t stay longer and no one can deny the precarious effects on the world’s economy will soon be evident.

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INTERNATIONAL

Fortunately, the 2015 collapse didn’t hurt many households but it helped shaking up the badly conceived belief that government stimulus ensured ever rising stock prices. Another bubble developed in commodity future markets this year was popped by government authorities with minimal damage. But the biggest of all is emerging in the housing market, with the infrastructure being the center of all investments, as huge amount of credit is being showered on developers and home buyers. Typical investors regard town houses and apartments as pure financial investments and often buy multiple units they don’t bother to live in or even rent out. The latter is deemed to only diminish eventual resale value. The homes are merely stockpiled by investors, whether citizens, SOEs, or banks, in the conviction that growing urbanization will bail them out. Any major collapse in the most

speculative market would have a major impact on the Chinese financial system and will be enough to create a havoc in the global economy exactly like the subprime crisis leading to global meltdown in 2008.

Conclusion: By far, the government has been very proficient in extinguish the fires arising in various markets such as the $3 trillion corporate bond market by preventing defaults which in turn is done effecting restructurings with still more debt.

But the bomb would detonate if there is a string of loan defaults or capital leakage outside China. The domestic demand growth will also decline at an increasing pace. Thus, The fire would continue in U.S. with China being the largest creditor to the U.S. holding the largest part of the U.S. treasury securities and it will then engulf all the economies in the world.

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FINHUMOUR - NIDHI KUMAR

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MARKET BSE Sensex - Top GAINERS Sun Pharma Siemens Union Bank of India Vedanta ABB India

- ADYA JHA BSE Sensex - Top LOSERS Mah & Mah Financial Services Shriram Trans. Fin Bajaj Finance Motherson Sumi Sys UPL

Market The performance of the Indian market in the last two weeks has not been good. Owing to the demonetization of Rs 500 and Rs 1000 rupee notes by the Indian government, there was a drastic fall in the Indian market. There was a fall of 3.93% in the BSE SENSEX and a fall of 3.54% in the NIFTY. The sector which was hit hard the most was the realty sector. There was an increase in the gold prices in Tuesday after the announcement was made by the Prime Minister Narendra Modi. Though the election of Donald Trump as the U.S. President was initially met with negativity in the U.S. market, the negativity was soon covered up as the market recovered. In fact the market ended in a positive the very same day with the U.S benchmark index ending at 1.4% up.

Market SENSEX NIFTY 50

Open

Closing

27,955.07 8,629.70

26,818.82 8,296.30

Graph1: A fall of 3.93% in the BSE SENSEX

Graph1: NSE Nifty from Oct 3 to Oct 14, 2016 Page 13

STARTUP TRACKER

Credit Karma

- AFROZ HUSAIN

Credit Karma is a free credit and financial management platform for consumers available on the web and major mobile platforms. You can get always-free credit reports and credit scores from two leading credit bureaus on this platform. In addition to its free credit reports and tools, Credit Karma offers a My Spending Tool through account aggregation service Yodlee, which allows users to track their credit card, loan transactions and balances in Credit Karma’s interface. Credit Karma also hosts user forums for financial product reviews and credit advice, and provides calculator tools for debt repayment, amortization, home affordability and simple loans.

specific needs. They believe that taking charge of people’s credit and reaching their financial goals go hand in hand.

Credit Karma has been featured in  MSNBC  SmartMoney  Wall Street Journal  Forbes  TechCrunch  USA TODAY

Founder Kenneth Lin is is the CEO and co-founder of Credit Karma. According to Forbes, he has "forever changed the way people interact with Features of Credit Karma: their credit". Ken started Credit Karma after  Credit reports and scores provided by both growing weary of paying to see his own credit TransUnion and Equifax score. He knew there had to be a better, more  Weekly updates of credit scores and reports transparent option for consumers. Prior to Credit  Daily monitoring of your TransUnion credit Karma, Ken founded Multilytics Marketing, a data report -driven marketing agency that actively managed  Push notifications for credit alerts more than $40 million a year in online marketing  Personalized recommendations dollars for clients such as Wells Fargo, Liberty  Tools to track all your reported accounts in one Mutual and eBay. place All of Credit Karma’s services are free to consumers. Revenue from targeted advertisements for financial products offsets the costs of free credit reports, credit scores and credit monitoring.

Additionally, Credit Karma is paid by lenders for successful recommendations.

Credit Karma is both a free consumer service and a personalized marketplace. They provide more than 60 million people with free credit scores, reports and credit monitoring, and specialize in helping people find financial products that fit their Page 14

FINAPP

Deloitte India GST Mobile App

- ANSHUMAN NANDWANA

Platform: iOs and Android Offered By: Deloitte India With the passage of the GST Bill, there are high chances of GST being implemented in India from the next financial year itself. Currently, the central and state governments are busy developing the framework of the GST. It is of crucial importance to a common man to be cognizant about the developments in the GST framework as it has a direct impact on the economy of the country. Considering this, Deloitte India has come up with an app that provides all the recent development in the GST Framework along with insights from some of the best tax experts in the country. The app would help people from all spectrums to understand the developments and carve out better strategies for there businesses and investments.

The App enables you to:  catch the latest news on GST in India  access the latest Deloitte newsletters and publications on GST covering the latest developments  read the latest articles written by Deloitte professions on GST  register for upcoming DBriefs  know more about Deloitte India’s Indirect Tax partners and get in touch with them The interface of the app is very much intuitive and easy to understand, It provides information in much more detailed manner than any generic newspaper article and hence if of great benefit to the people who are looking for inner insights on GST. Also, the information can be saved and can be read offline whenever required. Overall, it’s a nice packaged bundle on developments of GST and how it impacts every individual.

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FINWORD

Chattel Mortgage

- HRISHIKESH GULKOTWAR

Definition: ‘It is a loan extended to an individual or a company on a moving property’.

The movable property can be a car, Winnebago etc. on which loan can be extended. In a traditional setup, a loan is given to an individual or a company based on the security provided, i.e. land, house etc. but with Chattel mortgage, loan is issued based on ‘chattel’, i.e. the ownership is transferred to the bank till the amount is repaid, as opposed to lien in the traditional system. Once the loan is repaid the ownership is transferred to the borrower. It has following benefits Lower interest rates  Flexible payment structure Thus, such type of a loan is beneficial to small business owners. For the lenders, it is an easy way out as they can quickly sell the movable security (car, yachts etc. against which loan is taken) in the event of a default.

Chattel mortgage is used to help finance a movable home on leased land. Since the land does not belong to the owner of the mobile home, traditional mortgage cannot be used. Instead, the movable home is considered as subject of chattel mortgage, and can serve as security for the loan. In the event where the home is moved, financial arrangements remain valid.

Abandonment Value Definition: ‘it is the equivalent cash value of a project if it is liquidated immediately after reducing all debts which need to be repaid.’

The general rule for deciding to scrap a project is based on project salvage value and net present value (NPV). If the salvage value is greater than NPV expected cash flows, the project is abandoned.

Abandonment values are also an important factor in bankruptcy proceedings, where assets are typically sold at distressed or liquidation prices.

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DID YOU KNOW

- KRISHANT KAUL

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The RBI is also referred to as Mint Street and the Ministry of Finance is called the North Block.

The software hub of India, Bangalore is the city that possesses more number of Grade-A offices than Singapore.

It is possible to find out which place a particular coin was minted at by determining the mark below the date of minting with this table :

Apart from Hindi and English which appear on the front side of a note, 15 other languages appear on the reverse side.

If you have a torn note, or more than 51% of its torn part, you can exchange it for a new one at a bank.

Zero rupee notes were issued by the NGO 5th Pillar to fight corruption.

The rupee was the currency of several other countries like Aden, Oman, Kuwait, Bahrain, Qatar, the Trucial States, Kenya, Uganda, the Seychelles and Mauritius in the early 20th Century.

Hawkish stance is the one in which inflation is controlled by increasing the interest rates, Dovish stance is the one in which economic growth is favored by lowering the interest rates.

The one rupee note was the first banknote printed by independent India.

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FINQUIZ

1. Bank of the Middle East, Dubai is maintaining an account with SBI Mumbai. SBI Mumbai calls this account as [A] Nostro Account [B] Vostro Account [C] Loro Account [D] Mirror Account

- AMAN ANAND

2. The value of a forward contact at its initiation is [A] Zero [B] Forward price [C] Bid- ask spread [D] Spot Price minus forward price 3. The amount that can be realised by a company if it sells its business as an operating one is known as [A] Going Concern Value [B] Market Value [C] Book Value [D] Replacement Value 4. Which of the following is a liquidity ratio?

[A] Return on Equity [B] Return on Investment [C] Acid-Test ratio [D] Debt- equity ratio 5. Which of the following players cannot act as a borrower in the call money market?

[A] Discount and finance house of India [B] SBI Mutual Fund [C] State Bank of India [D] Securities Trading Corporation of India 6.

[A] [B] [C] [D]

The Currency Convertibility concept in its original form is originated in Taylor’s Agreement Wells Agreement Bretton Woods Agreement Symonds Agreement Page 18

FINQUIZ

7.

[A] [B] [C] [D]

The standard of living in a country is represented by its National Income Per Capita income Poverty Ratio Unemployment Rate

8.

[A] [B] [C] [D]

Which of the following rates is not determined by the RBI CRR SCR Repo Rate Prime Lending Rate

9.

[A] [B] [C] [D]

Who among the following is most benefitted from inflation?

Government Pensioners Creditors Saving Bank Account Holders Debtors

10. Which currency was anointed as one of the world's elite currencies in December 2015 by the International Monetary fund (IMF)?

[A] Yen [B] Rupee [C] Renminbi [D] Taka

Answers: 1. B 6. C

2. A 7. B

3. A 8. D

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4. C 9. D

5. B 10. C

LIFE @ IMT

With the onset of winter, dense smog and chilly winds welcomed IMTians after Diwali holidays. Falling temperature was never a dampener to IMT’s competitive spirit.

- RISHI SAXENA SSR activities were a huge success and students came out in full spirit of giving back to society. We enthusiastically approached our respective NGOs and highlighted our care for society. Marketing World Cup kicked off on 12th November and showcased exceptional marketing talent of IMT and other colleges. MADF organized Joy of Giving which celebrate its 10th anniversary.

IMTians also witnessed some successful workshops. Workshop on Excel and workshop organized by Money Roller witnessed huge participation and great learning.

FinNiche along with ICICI Direct organized a grade certification course (Pillars of Equity Investment) for the students of IMT - Ghaziabad. The program is a tailor-made certification program for students intending to acquire practical knowledge on stock investing & trading. It witnessed participation coming in huge numbers. The ongoing workshop promises excellent learning and practical understanding.

We at FinNiche wish everyone the best for their Future.

Go for It Managers!

Glimpses of Workshop on Pillars of Equity Investments

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OUR SPONSORS

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