Finance Articles

Finance articles section focuses on various concepts of finance like budget, stock market and economics of various products & services. Apart from these articles on global financial institutions, different banking systems and topics of international importance in the field of finance are present.



Payment Banks - Basics and Importance January 02, 2016

Payment banks can accept deposits up to Rs. 1 lakh per customer and are allowed to give interest on the money deposit by the customers. It can be used either as current account or savings account. Only major difference between payment banks and regular banks is that former cannot be involved in lending activities or issue credit card. It has to 75% of its money in government securities. These kind of banks can issue debit card or ATM to its customers, so that they can withdraw money from anywhere.

 

Chinese Yuan Devaluation & US Interest Rate Hike- Impact on India December 22, 2015

Before looking into the impact of Yuan devaluation, we will look at the reasons behind this devaluation move by the Chinese government. China has the tradition of keeping its exchange rate relatively low to make its exports competitive. But, the Chinese currency has become stronger when compared with other Asian currencies in the last 12 months (prior to devaluation) by more than 10 percent. This has made Chinese goods more expensive abroad. Because of this, the exports declined by 8.3 percent in July 2015 on a year on year basis . This decline will eventually affect the jobs of millions working in Chinese factories. So, the devaluation can be seen as a move to increase the exports.

 

Quantitative Easing & the European Economic Crisis December 18, 2015

As the European markets woke up on the day of January 15, 2015, a normal trading day turned into what would be one of the wildest in the Swiss market history. The unforeseen move by the central bank to lift the euro cap on the Swiss Franc saw the currency at a whopping 30 percent higher against the Euro within minutes. This decision of the Swiss National Bank (SNB) was driven by, among other considerations, a speculation about the action of the European Central Bank (ECB) in light of the slowdown facing the Eurozone.

 

Pillars of Growth of the Indian Economy December 15, 2015

The Indian economy is going through a recovering period, growing close to 9% before the recession to 7% in the last quarter of the 2015-16 fiscal. It is globally acknowledged that despite the recent slack in the economy, prospects of Indian economy remain optimistic. The reason for that could be India's tremendous potential in improving its current state of economy. There are primarily four different areas - Infrastructure, Human Capital, Business Regulation, and Finance - in which considerable amount of work needs to be done for the Indian economy to grow at its potential.

 

Yuan Devaluation- Impact on US, India & the World December 14, 2015

Devaluation means reduction in the exchange value of a country’s currency with respect to a foreign reference currency. It helps securing the foreign trade and tourism. The devaluating country gets less for what they are selling abroad and pay more for what they are buying abroad.

 

Investment Banking Interview Questions and Answers December 11, 2015

In this article we will have a look at Investment Banking Interview Questions. Investment banking is a specific division of banking which is related to the creation of capital for the government, other companies, and other entities. Investment banks are financial institutions which assists individuals, corporations & governments to raise financial capital by underwriting debt and equity securities for all types of corporations or acting as a client’s agent in the issuance of securities. It also helps facilitate mergers and acquisitions, broker trades for institutions and private investors and reorganisations. It also provides guidance to issuers regarding the issue and placement of stock.

2 main lines of business in investment banking are sell side and buy side. The “sell side” includes trading the securities for cash or for other securities or the promotion of securities. Facilitating transactions, market-making, underwriting and research are some types of the sell side entities. The “buy side” includes giving advise to institutions which are concerned with buying investment services. Mutual funds, private equity funds, unit trusts, life insurance companies, and hedge funds are the common types of buy side entities.


 

Bitcoins- Is It a Challenge to the Existing System? December 10, 2015

From times unmemorable, people have been sharing the relationship of give and take. This seems inevitable. After all, no person on this earth is self-sufficient but the most important question that arises at this point of time is that what is it that we use as our mode of exchange and the answer is ever evolving.