#QuestionOfTheDayQ. What were the total number of medals India got in Summer Olympics 2012?a) 8b) 5c) 4d) 6Ans: 6#QuestionOfTheDayQ. Andy Grove is most closely associated with which of the following companies?a) Intelb) IBMc) General Motorsd) ExxonAns: b#QuestionOfTheDayQ. Restore America Now- 2012 U.S. Presidential slogan of _________.a) Ron Paulb) Jill Steinc) Mitt Romneyd) Gary JohnsonAns: aQ. Veteran actor of Bengali Cinema, Soumitra Chatterjee was honoured with one of the following awards-1 Dadasaheb Phalke Award2 Dadasaheb Phalke Ratna Award3 Lifetime Achievement Award4 Sahitya Academy AwardAns: 1#QuestionOfTheDayQ. A centre dedicated to the life and works of Rabindranath Tagore is being proposed to be establishedat -1 Edinburgh2 London3 Tokyo4 WashingtonAns: 1#QuestionOfTheDayQ. The Teesta treaty has becomes a bone of contention between India and ...?1 China
2 Pakistan3 Bangladesh4 NepalAns: 3#Question of the dayQ. Which part of India was included in World Heritage List by UNESCO on July 1,2012?1 Eastern Ghats2 Western Ghats3 Kaziranga National Park4 Konkan RailwayAns: 2#Question of the DayQ. Who has been appointed the Prime Minister of Egypt on July 24, 2012?1 Mohammed Morsi2 Kamal Ganzouri3 Hesham Kandil4 None of themAns: 3#QuestionOfTheDayQ. Article 25 of the Constitution of India deals with -1 Right to Equality2 Right against Exploitation3 Right to Religiion4 Right to FreedomAns: 3#QuestionOfTheDayQ. Green Park, where test cricket is played, is located in -1 Ahmedabad2 Chennai3 Kanpur4 JohannesburgAns: 3#QuestionOfTheDayQ. Who was the last king of the Maurya dynasty?1 Asoka2 Brihadratha3 Chandragupta II4 Pushyamitra Sunga
Ans: 2#QuestionOfTheDayQ. What were the total number of medals India got in Summer Olympics 2012?a) 8b) 5c) 4d) 6Ans: 6#QuestionOfTheDayQ. The Teesta treaty has becomes a bone of contention between India and ...?1 China2 Pakistan3 Bangladesh4 NepalAns: 3#Question of the dayP.N. Dhar passed away on July 12,2012 in New Delhi. He was a great -1 Poet2 Scientist3 Musician4 EconomistAns: 4Question of the dayQ. Who is the author of the book Turning Point - A Journey Through Challenges?1 A.P.J. Abdul Kalam2 Hamid Ansari3 Jaswant Singh4 None of the aboveAns: 1#Question of the dayQ. Acme Clothing owns which famous brand?1. John Player2. Peter England3. Provogue4. Park Avenue
Ans:#question of the day:Q.Who is the author of the book Beyond the lines : An Auto-biography?1 Sharad Pawar2 Khushwant Singh3 Kuldip Nayar4 General J.J. SinghAns. Kuldip Nayar.#GK: Some major scams in India:Coal Mining scandal2G Spectrum ScamAdarsh scamCommonwealth Games ScamTelgi ScamSatyam ScamBofors ScamThe Fodder ScamThe Hawala Scandal#GK:What is Bank rate? Bank Rate is the rate at which central bank of the country ( Bank Rate in India isdecided by RBI) allows finance to commercial banks. Bank Rate is a tool, which central bank uses forshort-term purposes. Any upward revision in Bank Rate by central bank is an indication that banks shouldalso increase deposit rates as well as Base Rate / Benchmark Prime Lending Rate.Thus any revision in the Bank rate indicates that it is likely that interest rates on your deposits are likelyto either go up or go down, and it can also indicate an increase or decrease in your EMI.CRR means Cash Reserve Ratio. Banks in India are required to hold a certain proportion of their depositsin the form of cash. The minimum ratio (that is the part of the total deposits to be held as cash) isstipulated by the RBI and is known as the CRR.SLR: Every bank is required to maintain at the close of business every day, a minimum proportion of theirNet Demand and Time Liabilities as liquid assets in the form of cash, gold and un-encumbered approvedsecurities. The ratio of liquid assets to demand and time liabilities is known as Statutory Liquidity Ratio(SLR). RBI is empowered to increase this ratio up to 40%. An increase in SLR also restrict the bank’sleverage position to pump more money into the economy.#GK:6 Economic indicators to keep in mind before you go for SNAP 2012.1. Inflation: CPI as well as WPI, values and parameters which they are based on
2. Growth rates: GDP, GNP and other ratios related to showing economic growth of the country, valuesas well as calculation parameters.3. The various important sectors and their contributions to our GDP. eg. Manufacturing, Agriculture,Services.4. Industrial output figures for the more important industries.5. Investments: FDI and FII are in at the moment. Latest figures as well as calculation procedures andparameters should be taken into account.6. The various liquidity rates: CRR, Repo Rate, Reverse Repo Rate, Bank Rate etc. Values and calculation.We will go into the details for each of them soon.Stay tuned for more..SNAP 101:Did you know that SNAP this year is moving from a absolute score format to a percentile based format?Not only will you be given an overall percentile for your performance in SNAP, the sectional scores willalso be in the form of percentages.This will allow you judge your standing, based on your performance, relative to other SNAP takers fromaround the country.What do you think about this switch? Do give us your opinions about the same.#GK: CAUSES OF INFLATION1. Over-expansion of money supply i.e. excess liquidity in the economy leads to inflation because “toomany money would be chasing too few goods”.2. Expansion of Bank Credit Rapid expansion of bank credit is also responsible for the inflationary trend ina country.3. Deficit Financing: The high doses of deficit financing which may cause reckless spending, may alsocontribute to the growth of the inflationary spiral in a country.4. A high population growth leads to increase in demand and money income and cause a high price rise.5. Excessive increase in the price of fuel or food products due to political, economic or natural reasonswill lead to inflation for short- as well as long-term.6.High Indirect Taxes: Incidence of high commodity taxation. Prices tend to rise on account of highexcise duties imposed by the Government on raw materials and essentials.7.Black Money: It is widely condemned that black money in the hands of tax evaders and black marketersas an important source of inflation in a country. Black money encourages lavish spending, which causesexcess demand and a rise in prices.8.Poor Performance of Farm Sector: If agricultural production especially foodgrains production is verylow, it would lead to shortage of foodgrains, will lead to inflation.9.High Administrative Pricing10.Other reasons are capital bottleneck, entrepreneurial bottlenecks, infrastructural bottlenecks andforeign exchange bottlenecks.
#GK: STATES OF INFLATIONThere are different states of inflation which is characterized based on its value as well as variation fromthe previous value.1. Hyperinflation – It is a very high rate of inflation, usually a rate in excess of 50%. History has someexcellent examples of hyperinflation. In Germany, inflation exceeded 1 million % in 1923. It was said thata horse cart full of money would not buy even a newspaper. Right now, Zimbabwe is having an inflation of 1 million %. They have toissue currency of $500 Million dollar which could only buy a lunch at McDonalds.2. Deflation – It is the decrease in the general price level of goods and services only when annualinflation is below 0% resulting in the real value of money. Hence, it is sometimes called “negativeinflation”. Japan suffered from deflation for almost a decade in 1990s. To control recession and CentralBank of Japan was forced to have a negative interest rate on deposit for over a decade.3. Disinflation – It refers to a time when the rate of change of prices is falling while the inflation rate ispositive. For example – if the inflation rate comes down from 3% to 2%, we would say it is disinflation.4. Stagflation – It is an economic situation in which inflation and economic stagnation occursimultaneously and remain unchecked for a period of time. Stagflation can result when an economy isslowed by an unfavorable supply shock, such as an increase in the price of oil in an oil importing country,which tends to raise prices at the same time that it slows the economy by making production lessprofitable.#GKINDIAs TOP EARNERS:1. Mukesh Ambani (Net Worth: $22.6 billion)2. Lakshmi Mittal (Net Worth: $19.2 billion)3. Azim Premji (Net Worth: $13 billion)4. Shashi & Ravi Ruia (Net Worth: $10.2 billion)5. Savitri Jindal (Net Worth: $9.5 billion)#GK: FDI vs FII:Foreign direct investment (FDI) refers to a company from one country making an investment in anothercountry. This investment can be a physical investment, such as building a factory, purchasing land, ormining. Purchasing a controlling interest in an existing foreign company is also considered a foreign directinvestment. Joint ventures and reciprocal trade agreements are othertypes of FDIs. A joint venture includes two or more companies financing and managing the investment inthe foreign country. In a reciprocal trade agreement, two companies that produce similar goods agree toact as distributor for each other in their home countries. When a company licenses its products, and theyare produced in a foreign country by another company, this is also a form of FDI. When a companymakes this type of FDI to expand its business in another country, this is called a horizontal foreign directinvestment. A Japanese car maker building a factory in the United States, or purchasing a controllinginterest in an American car maker, are examples of horizontal FDI. Companies can also make verticalFDIs to increase sales and grow the business.Vertical FDI occurs when a company takes on the role ofeither supplier or distributor for its finished products. When a Japanese car maker builds an auto partsplant in the United States or buys a car dealer to sell its cars, the Japanese company has made a verticalFDI.
A foreign institutional investor (FII) is a financial company that invests in the markets of a country otherthan the one it is based in. A number of financial firms engage in foreign investment for a wide variety ofreasons ranging from a desire to diversify to plans to take advantage of emerging market trends in othercountries. In a rather dramatic example, a number of pension funds in Britain invested in Icelandiccompanies prior to the financial crisis of the early 2000s, and many experienced substantial losses whenthe economy of Iceland crashed. Foreign institutional investors can include mutual funds, hedge funds,pension funds, and insurance funds. In all cases, they are institutions rather than individual investors andsome of them represent very large groups of investors, including other institutions like school districts,educational institutions, and so forth.#GK: Something about LPG.In 1991, after India faced a balance of payments crisis, it had to pledge 20 tons of gold to Union Bank ofSwitzerlandand 47 tons to Bank of England as part of a bailout deal with the International Monetary Fund (IMF). Inaddition, IMFrequired India to undertake a series of structural economic reforms. As a result of this requirement, thegovernment ofP. V. Narasimha Rao and his finance minister Manmohan Singh started breakthrough reforms, although they didnotimplement many of the reforms IMF wanted. The new neo-liberal policies included opening forinternational trade andinvestment, deregulation (Deregulation is when government reduces its role and allows industry greaterfreedom in how itoperates), initiation of privatization, tax reforms, and inflation-controlling measures.Privatization is the incidence or process of transferring ownership of a business, enterprise, agency,public service orproperty from the public sector (the state or government) to the private sector (businesses that operatefor a privateprofit) or to private non-profit organizations.Globalisation is the global distribution of the production of goods and services, through reduction ofbarriers tointernational trade such as tariffs, export fees, and import quotas.Some of the steps taken to liberalize and globalize our economy were:
1. Devaluation: To solve the balance of payment problem Indian currency were devaluated by 18 to19%.2. Disinvestment: To make the LPG model smooth many of the public sectors were sold to the privatesector.3. Allowing Foreign Direct Investment (FDI): FDI was allowed in a wide range of sectors.4. NRI Scheme: The facilities which were available to foreign investors were also given to NRIs.KNOW YOUR BASICS: BASEL IIIBasel III is a global regulatory standard on bank capital adequacy, stress testing and market liquidity riskagreed upon by the members of the Basel Committee on Banking Supervision in 2010-11. The thirdinstalment of the Basel Accords was developed in response to the deficiencies in financial regulationrevealed by the late-2000s financial crisis. Basel III strengthens bank capital requirements and introducesnew regulatory requirements on bank liquidity and bank leverage. Basel III will require banks to hold4.5% of common equity (up from 2% in Basel II) and 6% of Tier I capital (up from 4% in Basel II) ofrisk-weighted assets (RWA).Did you know...1) Bill Bowerman, founder of the shoe company Nike, got his first shoe idea after staring at a waffle iron.This gave him the idea of using squared spikes to make the shoes lighter.2)7-Eleven is the largest retail chain in the world.3) Business.com is currently the most expensive domain name sold for $7.5 million.4) Duracell, the battery-maker, built parts of its new international headquarters using materials from itsown waste.5) Google.coms company headquarters is nicknamed the Googleplex, which houses over two hundredand seventy employees.A nice readEDITORIAL in THE HINDU October 4, 2012Join the party, Mr. KejriwalWhen Anna Hazare and Arvind Kejriwal came together 17 months ago, the air throbbed with magic andhope, the response was sensational, and India seemed on the brink of heady, inspirational change. Butlike all transient curiosities, the pair that promised to banish corruption from public life has faded frommemory even as the scams and scandals it fought against have attained a size and scale unimaginable in an earliertime. This is not all. In an ironic imitation of the politics that Team Anna relentlessly lampooned, it hassplit vertically, with one faction led by Mr. Kejriwal deciding to enter the electoral arena while Annahimself continues to be implacably opposed to politics, seeing it as a cesspool that only the irredeemablyvenal would plunge into. Why did the movement not reach its objective? Team Anna’s maximalist positionon the Jan Lokpal Bill, which it projected as a one-stop cure for all problems, scared away even thosecommitted to probity in public life. Political support which was forthcoming in the early stages of the Bill’sformulation, disappeared in part because of a genuine concern that the Jan Lokpal was designed to bestructurally overarching and in part because of Team Anna’s vilification of politicians and even politics.Over the following months, as Anna’s repetitive rallies and fasts began to attract fewer and fewer crowds,the veteran and his team found themselves hard pressed to answer a hostile counter question: If politicswas so dirty, why not assume responsibility and clean it from inside instead of grandstanding from a safe
distance? It is to Mr. Kejriwal’s credit that he did not resist the idea for too long. Anna’s estrangedlieutenant has taken courage in his hand and floated a party with idealistic goals in an environmentheavily contaminated by sleaze money and big corporate interests. As he ponders the next steps, Mr.Kerjriwal will surely experience for himself the challenge of practising politics without its attendant ills. Hewill also find the going tough in the absence of the charismatic Anna who drew his legitimacy from beingseen as a selfless, modern-day savant. And yet Anna often failed to distinguish between sinceresupporters who wanted a systemic overhaul and right-wing elements who infiltrated his campaign tofurther their divisive agenda. Though initially taken with the likes of the hugely popular Swami Ramdev,Mr. Kejriwal realised in time that neutrality was vital for his kind of politics. If he makes even a smalldifference to the popular perception of politics, he will have done a lot.