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“Let us read, and let us dance; these two amusements will never do any harm to the world.” ~ Voltaire Greetings for the festive season!! With rejoicing memories of Onam and the blessings of Maa Durga we unfold yet another chapter of learning at IMT.


India is all set to host the eight BRICS summit in Goa on October 15-16. After a complete white wash of the black caps in the test arena, India cricket team is charged up to take on NZ in the ODI series starting October 16. The US presidential debates have so far caused some hot controversy and we can expect a lot more to come. A hike in the diesel and petrol prices has been a little disappointing but the good news is that RBI in its first bi-monthly monetary policy review for 2016-17 has cut the repo rate by 0.25 percent to 6.5 per cent. The Student Affairs and Welfare Committee of IMT Ghaziabad organized Cyclothon'16, a cycling based social initiative where cycling enthusiasts come together to spread awareness about the issues plaguing our society. This year, on the fourth edition of Cyclothon, the students, in association with the Delhi Cyclists Group and Firefox went on a 20 KM ride in support of the theme “Ride For Our Brave Hearts”.


The much awaited PASSION ‘16 is here, there are no words to describe the event as its grandeur will say it all. With 30 events under its belt and record participation from all over the country, we are sure it’s going to be a grand success. Wishing good luck to all the participants.


We would like to extend our gratitude to the mess committee for arranging such a huge and hassle -free “PASTA NITE”. Still laden with the thoughts of the mouth-watering pasta in our minds, we are inching towards the end of another term.


As always, we bring to you the major events from the national and international circles along with some knowledge enriching articles.


Hope everyone enjoys reading them. “Best of luck! “to the first year students for their second end term exams.

LIFE @ IMT | 21

Happy Reading!


Regards The Editorial Team Club FinNiche


O C T O B E R ,




Indo-Pak, a war that should never happen “If 100 million Indians died in a Pakistani nuclear attack, India’s retaliation would wipe out Pakistan”- BJP Rajya Sabha MP Subramanian Swamy

SNIPPETS More than 21 million people will be directly killed

“If Pakistan’s security is threatened, we will not hesitate in using tactical (nuclear) weapons”Pakistan’s Defence Minister Khawaja M Asif

Half the world’s protective ozone layer would be destroyed

With recent surge in cross border firing and surgical strikes carried out by Indian soldiers in PoK, every media channel is cashing on war strategy and its results. But if we really question ourselves whether a war between two nuclear armed neighbours is a possibility, an answer is a big NO. Let’s look at some facts if two countries go to war

This death toll would be 2,221 times the number of civilians and security forces killed by terrorists in India over nine years to 2015

Implications to Indo-Pak This death toll would be 2,221 times the number of civilians and security forces killed by terrorists in India over nine years to 2015.

Global implications: If India and Pakistan went on a war detonating 100 nuclear warheads (which is around half of their combined arsenal), each of them equivalent to a 15-kiloton Hiroshima bomb, more than 21 million people will be directly killed, about half the world’s protective ozone layer would be destroyed, and a “nuclear winter” would cripple the monsoons and agriculture worldwide. The first 21 million people, half the death toll of World War II would perish within the first week from blast effects, burns and acute radiation. Another two billion people worldwide would face risks of severe starvation due to the climatic effects of the nuclear-weapon use in the subcontinent.



Facts about Pakistan nuclear weapons: As many as 66% Pakistani nuclear warheads are mounted on 86 land-based ballistic missiles, according to Bulletin of the Atomic Scientists data estimates. Pakistan’s Haft (named after the sword of Prophet Muhammad) series of ballistic missiles has been developed – and is still under development, keeping India in mind. Nearly half (40) of Pakistan’s ballistic missile warheads could be mated to Ghauri. The missile has a claimed range of 1,300 km and can target Delhi, Jaipur, Ahmedabad, Mumbai, Pune, Nagpur, Bhopal and Lucknow. Pakistan has an estimated eight warheads which could be mated to the Shaheen (Falcon) II. This MRBM has a range of 2,500 km and can target most major Indian cities, including

India has 20 nuclear-tipped Agni I SRBM and eight Agni II intermediate range ballistic missiles , with ranges of 700 km and 2,000 km, respectively. These are capable of covering almost all Pakistani cities, including Lahore, Islamabad, Rawalpindi, Multan, Peshawar, Karachi, Quetta and Gwadar.

ship-launched 350-km range Dhanush SRBM, which could be fitted with nuclear warheads. India’s aircraft can deliver an estimated 45% of 106 warheads. The Indian Air Force’s Jaguar fighter bombers can deliver about 16 nuclear warheads, while the French-built Mirage-2000 fleet can deliver 32

Financial crisis: Defense expenditure in India 1998-99 was Rs. 39,897 crores. During the year of the Kargil conflict (1999-2000) it jumped by 18 per cent to Rs. 47,071 crores and 54,461 crores in 2000-01. The contained Kargil conflict cost about Rs. 10,000 crores. In 1962-63 (the year of the war with China), Agni III, IV and V, with their longer ranges, the economy grew by only 2 per cent; in might be able to reach all of Pakistan, but it 1965-66 (war with Pakistan) growth was a can be safely said that they are directed negative 3.7 per cent and in 1971-72 (the more towards China. Bangladesh war) it was as little as 0.9 per India also possesses an estimated two cent.





25 Years of Reforms in India Just as 1947 gave us independence from colonial rule, 1991 started the process that gave Indians freedom from self-defeating mindset.


Nehruvian Model

Nationalization of Banks

It is likely that future Indian school children will be made to learn two important dates from the 20th: 1947 and 1991. The importance of 1947 is obvious, but why is 1991 a turning point of similar importance?

and LIC

Agricultural reforms

Stock market

In 1947 after independence power was shifted from foreign-born elite to Indian born elite. Power was in hands of a tiny group of ‘wise men’ who knew what was best for the rest of the population. Thus a tiny group of planners led by PC Mahalanobis could decide how to allocate all resources.


FDI in India

A handful of business conglomerates cornered industrial licenses. Encouraged by the thinking of le Corbusier, urban planners could encode rigid mater plans that decide how people led their lives in perpetuity. A small clique of intellectuals and editors, supported by state-controlled media and academia, could tell people what to think. For all the socialist rhetoric, this system perpetuated the power of small elite political dynasties, business dynasties, even entertainment dynasties flourished. It should be no surprise that, with the exception of the Ambanis, the top business families of the 1990s were the same as those of the 1940s. The term license raj was coined in the 1950s by C Rajagopalachari, who predicted



the corruption and inefficiency that was to follow. LIC was nationalized in 1956 and within months its resources were being plundered by politically linked groups. This resulted in the Mundhra scandal of 1958 that was exposed by Feroz Gandhi. Rather than acknowledge the problem, Jawaharlal Nehru cut off link with his son in law. It was more obvious by the 1970s that the Nehruvian model had failed. However, establishment economist Raj Krishna dubbed the poor performance as the” Hindu rate of growth”. In other words, India’s culture and religious tradition were at fault and economic policies. Enormous resources were used to bolster intellectual justification for the failing system. Institution like JNU was created explicitly for this purpose and an elaborate system of national awards and positions was built to promote loyalties as public expenses Thus there was a need for reforms and in 1991 reforms came in the economic system of our country. The reforms which came in our economy were due to the economic collapse and not due change in mind set. With a few notable exceptions, the leading Indian intellectuals of that time were unanimous that liberalization was a bad thing. When the then finance minister Dr. Manmohan Singh presented the budget in February 1992, he felt it was necessary to say that “our nation will remain eternally

It is only 25 years since the liberalization process was initiated. New business leaders, writers, sports stars, and more brutally a new middle class has emerged. In 1991, India had the tiger as its national animal. But the world’s tiger economies lay far to its northeast. If an animal metaphor had to be used for India, it had to be the lamb. Not that it gamboled, but it was vulnerable and bleated for an IMF bailout, ON TOP OF THE ANNUAL handout from AID India consortium.

industry got a significant cover form other reforms like the currency was allowed to float. Agriculture reforms

other key reforms. It shifted the terms of trade that had been loaded on agriculture

The first sort was “STROKE OF THE PEN” Reforms, which essentially removed policy induced shackles





The controller of capital issues was

It opened up foreign investment and foreign technology licensing.

set up a new transparent stock exchange, The NSE

It opened the door for private sector 

With the establishment of NSE

in many areas which were reserved for only public sector.

shareholdings became dematerialized. futures and derivatives commenced, heralding a clear separation of spot and forward markets, a departure from system of badla.

Taxes on income were lowered

 down


Lowering the import duty would have affected the Indian market, but



scrapped AND THE Securities Exchange board of India (SEBI) was created by law. To regulate capital markets. The government took an initiative to

FIIs were allowed to enter in to the economy.

Import duties were lashed drastically. Excise duties came converged. Over


requirement to get clearance from  the Monopolies and Restrictive Trade practices (MRTP) Commission for large companies to expand or start something new was scrapped.




Another key set of reforms pertained to taxation


Today India is one of the biggest exporters of rice, cotton, beef, and milk products and the world’s third largest producer of farm goods.


protection cost in India much more than it costs in the global market. So a farmer had to hand over more of his own produce to buy whatever industrial goods required than his counterparts elsewhere had to. With the reduction in protection industrial prices fell

A quarter century later, the Indian economy roars and the world watches the tiger roar The transformation of the lamb into the tiger is the story of India socioeconomic reforms. The reforms were of different kinds.

Slashing of import duties produced


Regulators came up in telecom, power, hydrocarbon and insurance sec-


FISCAL CORRECTION: A large budget deficit had contributed to both double- digit inflation and high current account deficit by creating extra demands. Exports subsidies were abolished and others cut.

Trade policy reforms: the rupee was devalued by about 20% to make exports competitive, regulation and licensing controls on exports were eased.

Industrial policy reforms: these reforms unshackled the industry from licensing and inspector raj. Measure were taken that could spur investment, ease domestic supply constraints and make industry competitive

Public sector reforms: the public sector was given operational freedom to scale up and make bigger contribution to the economy.

Post liberalization, the Indian work place changed dramatically. Talent flowed away from PSUs to private sector. Power shifted from employer to employee. More than a 25 years ago, in a long dingy corridor of a public sector company, a hundred graduates would have queued up since morning, waiting to be ushered into the interview cabin. The fatigue on their faces reflected the tired state of the economy. That story would repeat in corridors across the country where employer was king. Liberalization has been the wind beneath the wings for this massive formal jobs creation in BFSI, TELECOM, IT, HOSPITALITY, RETAIL, AVIATION, FMCG, AND HEALTHCARE.



INDIAN private sector emerged as the aspiration employer from a time before liberalization when the best talent would go to PSUs, a handful of MNCs, or the IAS and other civil services. “Liberalization” created jobs for the educated middle class. States with good education benefitted the most. Liberalization has unleashed lot of energy within the system. Capital is no longer a constraint for companies with FDI coming to India and this led to emergence of home grown private sector companies that were professionally run like Infosys. Wipro, ICICI, HDFC. The technology industry underwent a paradigm shift. Companies like Infosys and Wipro showcased the possibilities and deliverables of Indian tech talent to the world. All these factors drove growth and created jobs. What 1991 reforms have taught business school? Business schools have been one of the first to adopt the realities of post liberalization changes in the Indian economy. Many moved away from producing managers for state-led enterprises to private enterprises. The competitive job market ensured that an elite engineering degree was followed by an MBA degree. India saw a mushrooming of B-schools. The evolving needs of industry ensured that business school education hanged in many ways. The concept of management has become broader. The Indian management sector has begun learning from its international peers. DISRUPTORS THEY CHANGED THE CONSUMERS OF LIBERALISED INDIA: WHAT SHE WATCHES, HOW SHE TRAVELS, WHERE SHE SHOPS.

to make a case for basic changes. The reason for this is that the intellectual and institutional framework of Nehruvian project was not systematically replaced. It was in 2014 that planning commission was finally abolished and NITI Aayog came into the picture. The manufacturing sector lagged behind in these 25 years. Present government is trying to fill that gap by the projects like make in INDIA. A bottom up economy and social structure



is all about how various entities interact independently with each other. Such a system cannot function with 34 million cases stuck in courts. This is why next generation reforms must be about transparent laws, quick judicial process and reliable policing.




US Fed: Policy Rate and Inflation FED is the Federal Reserve. It is the Central Bank of United States. Central Banks uses various monetary policy tools to control the supply of economy of money in the economy. Changes in interest rate are one such tool. When Central Bank raises interest rates it intends to reduce the flow of money in the economy and when it cuts rate it tries to increase the flow of money. SNIPPETS

Most often with respect to monetary policy 2 words are used: Dovish & Hawkish.

US Fed

What does it mean to be "dovish"? What does it mean to have a "dovish tone"? What does it mean if the Central banker is said to have a "dovish outlook"?

Hawkish and

A "dove" is somebody who believes that low interest rates are necessary in order to promote growth in the economy. A dove is not particularly worried that low interest rates may cause inflation down the road.


Impact of

If the Governor (FED) is said to have a "dovish stance", then this means that they are in favor of maintaining low interest rates in an effort to stimulate the economy. They are not particularly worried about inflation.

Federal Policy

Reflationary Policy

The opposite of a dove is a "hawk" Hawks are very worried about inflation and will usually advocate higher interest rates in an effort to lower inflation. Event: US Federal Reserve in its policy has decided to keep the interest rates unchanged (maintained Status Quo). And also maintained its target fund range at 0.25%-0.50% Key Highlight: The Statement has highlighted that the economic growth is improving at a moderate pace. It also stated about strong growth in household spending, however noted for softness in business fixed investment. On labor situation, Fed acknowledged that labor market conditions have improved in recent months with strong job gains in June. US Inflation has continued to remain below the Fed target, however it retained its view that inflation is expected to rise towards the 2% target in the medium term as the labor market improves further. Overall, Fed seemed more confident about its economy because of: a) Strong labor market b) Improving consumption data of US c) Gaining Real Estate Prices in US Impact of Fed Policy:



Dollar Is Likely to strengthen while EM (Emerging Market) Currencies will Depreciate

Inflation is likely to be higher with some global economies following reflationary policies and higher commodity prices

Concept: Reflationary Policy: “A fiscal or monetary policy, designed to expand a country's output and curb the effects of deflation. Reflation policies can include reducing taxes, changing the money supply and lowering interest rates. The term "reflation" is also used to describe the first phase of economic recovery after a period of contraction.� Situation in Other Countries: Following the extended period of low economic activity and the possible geopolitical risks post Brexit, global central banks have stayed circumspect of the ongoing fragile recovery and demonstrated their readiness to use the available means to boost the economy. The European Central Banks have been indicating that they are ready to take fresh action in order to stimulate the economy, if needed. Additionally, Japanese policymakers renewed their efforts to revive the faltering domestic economy- announcing a stimulus package of USD 265bn. With respect to UK, the steep depreciation in GBP in the fallout of the Brexit referendum has had an inflationary impact, even as BOE (Bank of England) stands ready to provide monetary support to prevent further sagging of economic sentiment and outlook. As can be seen, Global central banks might explore other non-monetary policy tools to revive growth as low interest rates saw limited success.





A Banking crisis in Euro Zone SNIPPETS



Equity on Banking Sector is5%

Greece: weakest banking system

Aggregate NPA is $360 billion (gross)

Job cuts to reduce cost

Commercial banks in the some of the countries of the euro zone are facing major problems because of increase in the quantum of bad loans and decrease in the profits, Presently return on equity (on an average) of the banking sector is only 5% compared to the 20% prior to 2008.The largest bank in the zone-“Deutsche Bank” has been hit by a big penalty amount by the US authorities for its malpractices in the dealings of mortgage back securities during the period of 2007-08;separately some of the executives of the bank are also facing the charges for farcifying the accounts during that period. Arguably, the weakest banking system, at present, is of Greece as its economy has been shrinking from the last 6 six years since the sovereign debt crisis. Portugal has faced the crisis in 2011 due to which growth is meagre, investment in real economy has been falling and most of the banks are undercapitalized according to Basel case that made headline of the all the newspaper few days back was that “Nuvo Banco” created by carving out a “good bank” out of Binco Espirito Santo. The good bank now itself seems to be lost as some its bonds have been transferred to bad bank and the bond holders are obviously angry. And the Polish Government would like to force banks, which have given housing loans to the individual borrowers denominated in Swiss franc, at a time when Swiss rates were very low in the euro zone, to convert such loans to the domestic currency now, which will cause huge losses to the banks because the



scenario is totally opposite. The banking system of Italy, the third largest in the euro zone, is also in big trouble these days. The aggregate non preforming assets of the banks are $360 billion (gross). And the fiscal policy does not allow the Italian government to help out the banking system, no matter how it may want to. Meanwhile the European banking authority published last months’ results of stress test. The tests revealed that, while banks are better capitalized than they were five years back, they could face a shortage of capital, and many have failed the test standard. A panel of independent academias has estimated that the capital shortfall is of the order of $900 Billion! To put that number in perspective, in five years, European banks have added just $260 billion to their capital. The bigger question is whether capital based on mathematical models can ensure that no recourse to public funding would be necessary. In some ways DB may prove to be a test has “core capital” i.e. the capital net of secondary capital like compulsory convertible bonds etc. well above the BASEL 3 norms. Yet, its share has dropped 50% this year itself, and it is trading at a three-decade low: the proximate cause is $14 billion demand from the US authorities, which the bank is trying to negotiate remains to be seen what the final bill will come to. The premium on credit default swaps on its senior bonds has shot up since they are subordinated to deposit and other liabilities; it also has huge, ill-liquid, difficult

to value assets. Commerzbank Germany’s second largest bank is terminating the services of 10000 employees, and ING is shedding 7000 jobs to cut cost. The DB case illustrates one peculiarity of the banking business compared to most others: In banking, profits come first, and it takes time for losses to surface; in most businesses in the real economy the



sequence is exactly opposite. DB’s malpractices in 2007-08 are costing it heavily in 2016.A related issue is contagion: will confidence in Italian banking system be shaken further by DB’s problem? Another issue: are capital ratios enough to maintain confidence in financial intermediaries? As it is, earlier this year, the International Monetary Fund described DB as the riskiest significant bank.

FinHumor H R I S H I K E S H




Market S R I K A N T


ICICI Bank Petronet LNG L&T Fin Holding


Idea Cellular Central Bank of India JSW Energy


The performance of the global markets in the last 14 days has been mixed. With little growth in the economies of the major economies of the world, there have been concerns over the tepid global economy when the federal reserve appears ready to raise interest rates again. Amidst all the realities and speculations, we bring you this version of FinXpress which will cover how has the market behaved in the last 14 days. Global Markets We will start with the world’s second biggest economy. With the exports from China tumbling nearly 10% year on year and imports dipping 1.9% from the previous year, unexpected rise in the producer prices and consumer inflation beating expectations has eased some concerns about the economy amidst weak global demand and weaker than forecast data of September. Talking about Europe, the stocks there have ended positively. Stocks market in Germany and France were marginally up for 0.9% and 0.5% for the last week. After the flash crash in Asia, it has been very difficult for the British Pound to get rid of its tag of worst performing major currency of 2016. The pound’s weekly decline of 4.2% against the Euro was the worst since 2009, beating the 3.4 % drop during the Brexit referendum week. According to Reuters, oil prices fell slightly on Friday as traders balanced stronger dollar and another increase in the U.S. oil rig count against expectations that more OPEC talk of output cuts will keep crude above $50 per barrel. There have been speculations that prices would continue rising in the near term on expectations related to output cuts proposed by OPEC. Coming to the biggest economy of the world, the DJI (Dow Jones Industrial average) index was down by 0.6% caused by mixed results in earning season and a decrease in Chinese exports reigniting concerns about slowing economic growth although the released economic data showed continued strength in the job market and rebounding retail sales. Stocks in the past week were lower with the S&P 500 down nearly 1 percent at 2,132, the Dow down 0.6 percent at 18.138, and the Nasdaq off 1.5 percent at 5,214. In the past week, the market became vulnerable for the first time to the idea that Donald Trump's controversial behavior and sparring with Republicans could hurt GOP Congressional candidates. Indian Market: The Indian BSE Sensex ended last week in a dull territory down about 104%. This can be attributed to the expected federal rate hike in December worsened by a decline in Asian counterparts after China reported contraction in export figures. With the Indian IT market in its decline phase, the investors have lost a lot of money with the corresponding decline in the market. Meanwhile India’s retail inflation has eased to one-year low of 4.31 % in September with industrial output remaining negative after a slump in manufacturing, mining and capital goods segments. In the October 4 review of rates, RBI had cut repo rate by 25 basis points to 6.25 percent taking the total rate cuts since January 2015 to 175 bps. Now with both retail and wholesale inflation coming down, the reserve bank may cut policy rates by another 25 basis points this fiscal. In a report by India ratings, it has been said that in the medium term, the rupee will continue to be supported by fundamental drivers while the short term movement will be guided by corporate earnings and global risk appetite. On Oct 14, BSE opened at 27,712.22 after a previous day close of 27643.11 and closed at 27673.60 with an increase of 0.11% and Nifty opened at 8594.00 after a previous day close of



Graph1: BSE Sensex from Oct 3 to Oct 14 2016

Graph2: NSE Nifty from Oct 3 to Oct 14 2016



StartUp Tracker U T K A R S H



Fake document differentiator

Database of ID’s of organizations

One of the major culprits in credit card are individuals posing as bank representatives. These men are expert conmen with fake IDs whose validity is near impossible to question as long as they are scanned simply by the naked eye. Once such an individual shows us some Identification Document that seems genuine to us, we tend to trust them and are no longer hesitant in giving them the key to our all our treasures. JUMIO is a new app that helps in differentiating fake documents from the genuine ones. It maintains a vast data base of identification documents of various



organizations, including banks and non-banking financial corporations and identification documents of their employees. Thus, documents can be verified so as to ensure their validity and avoiding fraudulent activities. The way this start up works is an identification document is scanned using the camera of the user’s smart phone. The document, once scanned is verified using the vast data base that is maintained by the company.

FinApp A F R O Z


iBillionaire Platform: Android 4.4 and above, iOS 9.0 or above Current Version: 2.3.6 on Android, 3.0.9 on iOS Offered by: iBillionaire Inc Rating: 4.0 Installs: 50,000 – 1,00,000 Download link: Google Play Store, iTunes Size: 6.6 MB iBillionaire provides access to the investment data and strategies of the world’s most successful, self-made billionaires. Their mission is to help you become a better investor. Featured on CNBC, Bloomberg and Fox Business, this app breaks down and analyzes the investment data of leading billionaires like Warren Buffett, George Soros and Carl Icahn. It also provides key insights into the investment strategies and trades of leading hedge fund managers to help individuals confirm ideas, discover NYSE and NASDAQ stock opportunities, and compare their portfolios with the billionaires. On iBillionaire, you can find out which stocks, ETFs, indices and funds billionaires are betting on. iBillionaire has set out to help individuals make better investment decisions by learning from the most successful, self-made billionaires in the world.

Key Features Billionaire Portfolios: See snapshots of what billionaires are buying, selling and holding each quarter and how they hedge their bets. Featured Stocks: Discover a new billionaire stock, ETF or index every day. News: Get the latest news on billionaire investors, hedge funds, markets and trades from outlets like CNBC, Bloomberg, Fox Business and more. Search: Have an investment idea? Use our search feature to see what the billionaires think. Alerts: Receive push notifications on recent trades, stock prices and market news. Portfolios: Compare your performance against Wall Street’s best.



FinWord A M A N

Earnings Stripping




high domestic taxation rate


Perceived as an erosion of US Tax base



Earnings Stripping is a technique used by various MNC’s to escape high domestic taxation rates. This is done by paying excessive amounts of interests to another party. For example: - An Indian subsidiary of an American firm may reduce its taxable income by paying excessive amounts of interest to its parent company. However, since 1989 laws have been placed to ensure that such practices are not abused. Sec. 163(j), enacted by the Revenue Reconciliation Act of 1989, placed some restrictions on the amount of certain related-party interest expense deductions a foreign-owned U.S. corporation may take in computing its income tax (the so-called earnings stripping rules). Such

restrictions generally apply to tax years beginning after July 10, 1989. These rules were enacted in response to what was perceived as an erosion of the U.S. tax base through interest expense deductions. Similar laws came up in other parts of the world after 1989. The method of operation of Earnings Stripping involves a foreign controlling body making a loan to its subsidiary and then the subsidiary gives periodic interest payments to its parent company. Now in cases of Earning Stripping, these interest payments may be excessively high. The reduction in earnings has a domino effect on its overall tax liability because interest deductions are not taxed.

Did You Know? A N S H U M A N


The financial year of RBI is from 1 July to 30 June.

RBI is responsible only for printing the currency notes. Minting of coins is done by the Government of India.

The United States generates more than 20% of the world's GDP with about 4% of the world's population.

Dell "has spent more money on share repurchases than it earned throughout its life as a public company," writes Floyd Norris of the New York Times.

Apple's cash and investments are now equal to the GDP of Hungary and more than those of Vietnam and Iraq.



Wal-Mart averages a profit of $1.8 million every hour.

Samsung accounts for 20% of Korea’s gross domestic product.

If you have $10 in your pocket and no debts, you are wealthier than 25% of Americans.

FinQuizz A D Y A


1. An account with SBI Mumbai is being maintained by Bank of the Middle East, Dubai. SBI Mumbai calls this account: (A) Vostro Account

(B) Nostro Account

( C ) Mirror Account

(D) Loro Account

2. Development expenditure of the Central government does NOT include: (A) Expenditure on economic ser-

(B) Defence expenditure

( C ) Grant to states

(D) Expenditure on social and

3. Gilt-edged market refers to: (A) Market of government securties ( C ) Market of guns

(B) Bullion market (D) Market of pure metals

4. In the past decade, the sector which has attracted the highest FDI inflows into India is: (A) Services sector ( C ) Food processing

(B) Chemicals other than fertilizers (D) Telecommunication

5. If RBI lowers the cash reserve ratio, its impact on credit creation will be to:



(A) Decrease it

(B) No impact

( C ) Increase it

(D) None of the above

6. Which one of the following items will NOT appear in a company's balance sheet: (A) Cash held at the bank ( C ) Value of stocks of raw materials held

(B) Total issued capital (D) Revenue from sales of the company's products

7. States earn their maximum revenues through: (A) Custom revenue

(B) Land revenue

( C ) Commercial taxes

(D) Excise duties on the intoxicants

8. The debenture holders of a company are its: (A) Creditors

(B) Shareholders

( C ) Debtors

(D) Directors

9. The term deficit financing means that the government borrows money from the: (A) Big Businessmen

(B) Local bodies

( C ) RBI


10. Revenue of the state governments are raised from the following sources, except: (A) Agricultural income tax

(B) Expenditure tax

( C ) Entertainment tax

(D) Land revenue




1) A

2) B

3) A


5) C

6) D

7) C

8) A

9) C

10) A

Life @IMT N I D H I


The past few days like every other day @IMT have been quite fulfilling for all the students. With many guest lectures, SSR Talks and Mahindra War Room Campus Round, It has been quite a good learning experience to all . Not to forget the eagerly awaited Pasta Night along with the scoop of Baskin Robbins ice-cream . Starting With Onam celebrations and Passion Forms Rollout, We hope that the coming days at IMT are filled with the same level of excitement and jubilation. Along with the pressure of Project Submissions , Quizzes and Presentations , is the excitement for the Annual Fest with Coke Studio Raghu Dixit Project ‘s contemporary music , a number of Fine Arts and Cultural Contests. But Guys , Do not forget about the end terms just two days away from the Fest . Try to strike a balance. For the people who think they could have performed better in the first term , it is your chance to prove your mettle in this term . The placements are still on , So , Prepare well in advance and enjoy the Fest to the fullest . Live the time of your life - one day at a time .

We at FinNiche wish everyone the best for their Future. Go for It Managers!



Our Sponsors Tagore Road, Block L, Kavi Nagar, Ghaziabad, 201002



Finxpress oct 18  
Finxpress oct 18