Notes and Study material for Exams
International Credit Ratings A credit rating is an evaluation of the credit risk of a prospective debtor (an individual, a business, company or a government), predicting their ability to pay back the debt, and an implicit forecast of the likelihood of the debtor defaulting. The credit rating represents an evaluation of a credit … Read more
GS1;PART III;PART C Technique of Analysis of financial statement Financial statement: They are written records that convey the financial activities and condition of business or entity . It has four major components i.e. Income statement Balance sheets Statement of retained earnings Cash flows Financial statement analysis: It is a systematic … Read more
Public Private PARTNERSHIP for INFRASTRUCTURE and urban development projects. PPP is in particular need due to inefficiency, overstaffing and low productivity in govt. services and govt. owned enterprises. The projects under PPP go through competitive pricing process which clearly shows that the cost of public services is ‘bench marked’ against market standards. The payments which … Read more
Issues Of Finance, ownership, operation and maintenance of all kinds of Foreign Direct Investment under automatic route in the construction development sector. High capital intensity, low operating cost, higher gestation period, near absent risk mitigation measures, difficulties in getting Environment clearance, inability to generate direct adequate income streams to selffinance are some of the challenges … Read more
Institutions of developmental finance A Development Financial institution (DFI) is defined as “an institution endorsed or supported by Government of india primarily to provide development/Project finance to one or more sectors or sub-sectors of the economy. the institution differentiates itself by a thoughtful balance between commercial norms of operation, as adopted by any financial institution … Read more
Insufficient Financial Resources and Deficiency Of Capital The financial sector and its role in the process of Economic Development has attracted notable attention since the early 1990s. In particular, the crucial need for a stable Banking system was highlighted in the wake of the Asian financial crisis of the late 1990s. The rapid influx … Read more
Money Laundering And Black Money Money Laundering Money laundering is the process of making large amounts of money generated by a criminal activity, such as drug trafficking or terrorist funding, appear to have come from a legitimate source. The money from the criminal activity is considered dirty, and the process “launders” it to make it … Read more
Financial Inclusion or inclusive financing is the delivery of financial Services at affordable costs to sections of disadvantaged and low-income segments of Society, in contrast to financial exclusion where those services are not available or affordable. Government of India has launched an innovative scheme of Jan Dhan Yojna for Financial Inclusion to provide the financial … Read more
Repo rate is the rate at which the central bank of a country (Reserve Bank of India in case of India) lends Money to Commercial Banks in the event of any shortfall of funds. It is used for controlling Inflation of a country. High Repo rate: Taking loan from RBI will be costlier. Effect of … Read more
Monetary Policy TOOL: There are several direct and indirect instruments that are used for implementing monetary policy. Repo rate: The (fixed) interest rate at which the Reserve Bank provides overnight liquidity to banks against the collateral of government and other approved securities under the Liquidity Adjustment facility (LAF). Reverse Repo Rate: The (fixed) interest rate … Read more