Why one rupee note is signed by the ministry of finance? is governer has the right to sign this note? is there any interference by the RBI?

Correct Answer: Investment and asset are really close in meaning Investment is when you put your money in stock, bond or other financial instruments Whereas Asset is what you own generally reffered to land, proprietorship , factory, etc

Correct Answer: In business, a takeover is the purchase of one company by another

Correct Answer: The main difference lies in the motive of the two parties The main motive of the hedger is to hedge(minimize) the risk from the occurence of some events The motive of the speculator is to gamble in the market in order to make the profit by buying/selling the derivative products

Correct Answer: In economic terms, inflation is the rise in the prices of goods and services in the given economy over a period of time As the prices rise, each unit of the country's currency will buy fewer goods and services when the purchasing power of a currency go down then more money comes to the market it is called inflation

Correct Answer: Nominal money relates more to it's measure of counting - so nominal figure of what is written on bill, while "real" relates more to it's purchasing power (usually between some periods of time) For instance 100 units in nominal could buy 2 units of good in 1950 and 1 unit of good in 2005, at the same time real value of this 100 nominal units are 100 real units in 1950 and 50 real units in 2005 Same is with GDP In nominal it can rise due to inflation while it can stay the same or even decrease in real value

Correct Answer: It is statement of balances of all the accounts in the ledger prepared to prove the arithmetical accuracy of the books of accounts A trial Balance is a list of Debit and Credit or a list of Debit & Credit Balance of all the ledger accounts prepared on any particular date

Correct Answer: Secondary market refers to market where securities are traded after being initially offered to the public in the primary market and/or listed on the stock exchange

Correct Answer: Exchange Traded Funds (ETFs) are a relatively new phenomenon and are gaining popularity rapidly This post outlines the key features of an ETF ETFs are like mutual funds because they hold an underlying asset like stocks, debt, commodities future contracts etc If you are new to the concept of an ETF, think of it as a mutual fund, and build your understanding from thereon An example of an ETF is the SBI Gold ETF, which holds physical gold as its underlying asset

Correct Answer: Hedging is a tool to minimize the risks It is thus like an 'insurance' where one pays a premium but gets an assured amount in case of some uncertain event to the extent of the loss actually suffered on an equally opposite position for which the hedge was done Thus, hedger is different from arbitrageur and speculators, as the intention here is not to maximize the profit but to minimize the loss Eg In Capital Markets, suppose an investor has an equity portfolio of Rs 2 lacs and the portfolio consists of all the major stocks of NIFTY He thinks the market will improve in the long run but might go on a downside in the shortrun NIFTY today stands at 4300 To minimize the risk of downfall, he enters into an option contract by buying NIFTY-PUT of strike 4300 at a premium of, say, Rs 100 Thus, the actual amount paid is Rs 5,000(lot size of NIFTY is 50) Also, the number of NIFTY-PUTs to be bought will vary on the beta of the portfolio so as to completely hedge the positon

Correct Answer: A Treasury Bill (known as T-Bill) is an instrument of money market, used to finance short term requirements of Government of a country A T-Bill is issued at a rate lower than the Face value, and redeemed at Face value on maturity, this difference is the rate of interest on T-Bill This rate of interest is called Risk free Rate of the country