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Knowledges in Economics

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bull and bear market

The bear and bull markets are named after the way in which each animal attacks its victims. It is characteristic of the bull to drive its horns up into the air, while a bear, on the other hand, like the market that bears its name, will swipe its paws downward upon its unfortunate prey. Furthermore, bears and bulls were literally once fierce opponents, when it was popular to put bulls and bears into the arena to fight. Matches using bulls and bears (whether together or against other animals) took place in the Elizabethan era in London and were also a popular spectator sport in ancient Rome. Historically, the middlemen who were involved in the sale of bearskins would sell the skins that they had not yet received and, as such, these middlemen were the first short sellers. After promising their customers to deliver the paid-for bearskins, these middlemen would hope that the near-future purchase price of the skins from the trappers would decrease from the current market price. If the decrease occurred, the middlemen would make a personal profit from the spread between the price for which they had sold the skins and the price at which they later bought the skins from the trappers. These middlemen became known as bears, short for "bearskin jobbers," and the term stuck because it describes a person who expects or hopes for a decrease in the market.

Development

surabh pandey

competitiveness

China's attractiveness as a destination for investment capital rests on its development of infrastructure, resource availability (physical and labor), productivity and workforce skills, and the development of the business value chain. The level of maturation of these elements can make China more attractive for FDI relative to other nations, such as India, that compete and vie for the same investment capital. A growing and developing economy requires infrastructure and resources in order to facilitate the sale of goods and services. Lower transaction costs, due to the maturation of these elements, enables investors to earn returns on their investments as their enterprises are able to generate profits. Roads, highways, bridges and other forms of physical infrastructure should be present, maintained and provide sufficient safety for the transportation of goods as well as for the commute of employees. (For more on the importance of infrastructure, see Build Your Portfolio With Infrastructure Investments.) Another component for attracting FDI involves the availability of low-cost, skilled employees who possess the necessary aptitudes, experience and proficiencies to create, manufacture, and provide goods and services that can compete in global markets. (Learn how the Bretton Woods system got the ball rolling for world trade, read Global Trade And The Currency Market.)

Development

vishnu reddy

Leveling

Other

Rishi Sood

GST PPT

Other

MD ALI HASNAIN

Principles of Economics

Notes given below of economics. The topics that are includes the scope and method of economics , why study economics , how to read and understand graph , etc . #BITS pilani

Other

Avinash Pati

Quantitative Easing

Quantitative Easing QE is an unconventional monetary policy adopted by the central bank (e.g.: RBI) to stimulate the economy. Whenever the economy stagnates, and interest rates are very low (near ‘zero’), the central bank uses QE to increase the money supply in the economy. The way it is done is by buying government bonds or private. However there’s a catch: the money to buy the government bonds is ‘created digitally/electronically’ (it means that this money did not exist, it was created by the central bank, similar to just printing the money and infusing in the economy). Risks ·        The money infused in the economy is supposed to help boost consumption by way of increased lending and borrowing from the banks. So, it may happen that banks might not lend the money to people or people might not borrow the money at the new rate of interest. ·        There is the chance of sudden inflation (high). This happens due to the excess supply of money in the market but fewer goods to satisfy the demand, which will increase the prices of the goods. ·        Creating of money from thin air reduces the value of the money. This means that it’s value decreases in the international market. Currency Depreciates, which is good for the export industry but bad for imports. So, the overall effect of this will depend on other economic conditions. This method of reviving economic activity was used by USA (FED), Japan (bank of Japan), UK (bank of England) and European bank. While FED and Bank of England were successful in implementing the policy, Bank of Japan which was the first to use QE, failed to stimulate any economic activity. Quantitative easing is a good method of reviving economic activity, provided it is used infrequently, and supply of money is not very huge and sudden, in which case inflation follows few years down the line.

Other

Pritesh Parikh

Asset Allocation

Notes are avaliable for the student studying Economics as a course. The topics included and discussed are The Asset Allocation Decision, Financial Plan Preliminaries, Individual Investor, etc. #BITS Pilani

Other

Shivam Khetan