Thursday, January 29, 2015

Exeptions for law of demand (Speculative Market)

  Dear students , Today am going to talk about exceptions of law of demand, would like to more emphasize on speculative market, where share prices of the companies will be  predicted. General principle of demand is if product price increases, the Demand for the product decreases and vice-versa. But in case of speculative market when there is a news about share prices will  come down,  people will dispose their shares at current market prices. To what extent are speculators responsible for the increasing volatility of commodity prices? Expectations of price movements for globally traded commodities can have a huge impact on demand in the markets and the bets that speculators make on the forward prices of commodities such as oil can lead to rapid price hikes. We saw this with food and oil in 2008 - with enormous consequences for consumers and producers in developed and developing countries - and perhaps we are seeing this again as 2009 draws to a close. The world price of crude oil is already heading north again towards $90 a barrel.
This BBC world service audio report is a good resource on the impact of speculation and its possible links to exceptions to the law of demand where a rise in actual or expected prices can bring about an expansion of market demand.
“The International Food Policy Research Institute in Washington has studied price movements and concluded that they couldn’t all be explained by the fundamentals. And, perhaps most damning of all, a big-time speculator is now identifying speculation as one of the causes in the movement of the price of oil.”

Tuesday, January 20, 2015

PMJDY Made Guinness world records

 I am happy to say that Pradhana Mantri Jhan Dhan Yogana(PMJDY) made Guinness world records for opening of 11.5 Crores of Saving Bank Accounts within Four Months. India has become fully banked, a feat commended by the Guinness Book of World Records for being accomplished in the short span — about five months. It paves the way for the government's ambitious plan to transfer annual subsidy of around Rs 51,029 crore directly to bank accounts of 15.45 crore beneficiaries in the next year, plugging system leakages. "Most of India today is included in the banking system," finance minister Arun Jaitley told reporters on Tuesday. The Pradhan Mantri Jan-Dhan Yojana (PMJDY), launched by Prime Minister Narendra Modi in August, was recognised for opening the most bank accounts—about 1.80 crore— in one week as part of the financial inclusion campaign. The government has already rolled out direct transfer of benefits for various programmes. This includes the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) in 300 districts that's expected to cover 4.3 crore beneficiaries with a fund flow of Rs 15,000 crore annually besides transfers under various pension and scholarship schemes. The number of accounts opened under PMJDY stood at 11.5 crore as of January 17 after a survey of 21.02 crore households. Of total bank accounts opened, 3.23 crore have deposits worth Rs 9,188 crore. Rupay cards have been issued to more than 10 crore beneficiaries. "This is an unprecedented initiative. Bank employees have physically visited all households except the inaccessible areas," said Jaitley, adding that the government has far exceeded its target and will decide later on whether .
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Monday, January 12, 2015

Word of the Day - Water diamond paradox

Have you ever purchased something and thought to yourself, This is crazy how much I'm paying for this!? This might happen more frequently than you would like, based on the dozens of transaction you may make on a daily basis. Questioning some of your financial transactions may be best answered or explained through something known as the diamond-water paradox.
Getting enough water to sustain life typically has a low price, while a piece of diamond jewelry has a high price. Why does an economy put a much lower value on something vital to sustaining life compared to something that simply looks shiny and sparkles? This question is the diamond-water paradox (also known as paradox of value), and it was first presented by the economist Adam Smith in the 1700s. In his works, Smith points out that practical things that we use every day often have little or no value in exchange. Things like cups, utensils, socks, and water are a few examples. On the other hand, things that often have the greatest value in the market have little or no practical use. An example may be an old piece of art or 1920s baseball card. Other than looking at it, there isn't much else we can do with the art or baseball card. So why are things valued this way?
Understanding why the paradox exists can be helped by understanding the economic terms known as marginal utility and scarcity. Scarcity can be simply defined as how readily available a good, skill, or service is. Is there a lot of it compared to what people are demanding?Marginal utility is the additional satisfaction or gain someone gets from using or purchasing an additional unit of a particular good or service. People are willing to pay a higher price for goods with greater marginal utility.
So let's go back to water and diamonds. There is plenty of water in most parts of the world (not scarce), which means that as consumers, we usually have a low marginal utility for water. In a typical situation, we aren't willing to pay a lot of money for one more drink of water. Diamonds, however, are scarce. Because they are harder to find and attain, our marginal utility (additional satisfaction), for adding a diamond to our collection is much higher than someone offering us one more drink of water. If one is dying of thirst, then this paradox might not make sense, and the marginal utility from another drink of water would be much higher than the additional satisfaction of owning a diamond.

Tuesday, November 04, 2014

Wednesday, October 15, 2014

UGC Net is conducting by CBSE

The Central Board of Secondary Education (CBSE), the largest exam-conducting body, is now in charge of National Eligibility Test (NET).
The CBSE that already conducts Classes 10th & 12th Board examinations for its associate schools, pre-medical entrance exam, joint engineering entrance (main) and central teacher's eligibility test will now become the biggest exam-conducting body worldwide.
The number of CBSE applicants is set to cross 65 lakh in a year.
While University Grants Commission (UGC) failed to carry out the test hassle-free, with the HRD ministry's permission, the responsibility got transferred to the CBSE to carry out the test. NET is conducted twice a year for grant of junior research fellowship and eligibility for assistant professor in institutes of higher learning.
In a year, the CBSE has been conducting diverse qualifying, eligibility and entrance exams for over 63 lakh students. With NET, its number is expected to go beyond 65 lakh.
UGC conducted National Eligibility Test on June 29 this year where over 33,000 candidates appeared for the examination. The number of examinees this year was up by 25 per cent from that of the test carried out in December 2013. The UGC has also made available a feedback form at its website for the exam-takers. Results are expected to be declared soon.