The 1997 Asian Financial Crisis was the crisis that affected many Asian countries in July 1997. The Asian countries affected were Thailand, South Korea, Malaysia, Indonesia, Singapore, and the Philippines. The crisis originated in Thailand. Thailand’s currency Baht collapsed in July 1997: Thailand had a fixed exchange rate system. It had pegged the value of …
What is a trade war? Investopedia defines trade war as, “A negative side effect of protectionism that occurs when Country A raises tariffs on Country B’s imports in retaliation for Country B raising tariffs on Country A’s imports.” Since 2018, the US and China have been engaged in a trade war. This confrontation has led to several rounds of retaliatory tariff increases by …
What is the trade war between US and China?- Explained Read More »
What is a Mutual Fund? A mutual fund is a financial institution which collects money from a large number of investors. The money collected is invested in shares, bonds etc. The income and capital gains earned through these investments are shared amongst the investors (after deducting expenses and levies) in proportion to the number of …
Mutual Fund basics: What is a mutual fund and how does it work? Read More »
Market Stabilization Scheme (MSS) is a monetary policy tool used by the RBI to manage money supply in the economy. Under Market Stabilization Scheme or MSS, if there is an excess money supply in the economy, RBI intervenes by selling Government securities (like Treasury Bills, Cash Management Bills & Dated securities.). This helps to withdraw the excess …
Market stabilization scheme (MSS) in India: Explained Read More »
What are Treasury bills or T-bills? Treasury bills are Government bonds with a maturity of less than 1 year. (Read: What is a Bond?) T-bills are issued by the Government to meet its short-term expenditure requirements. It is also issued to regulate the money supply (liquidity) in the economy. For instance- if there is excess money …
Treasury bills in India: Meaning and Details of t-bills in India Read More »
What is structured finance? In simple words, structured finance is the use of complex financial instruments. Structured financial instruments are riskier It is mostly used by financial institutions and companies with unique financing needs Some examples of structured financial instruments- Derivatives, Mortgage-backed securities (MBS), Collateralised debt obligations (CDO), credit default swaps (CDS), synthetic financial instruments & …
What is meant by Basel norms or Basel accords? Basel norms are international banking regulations issued by the Basel Committee on Banking Supervision (BCBS). The Basel norms is an effort to coordinate banking regulations across the globe, with the goal of strengthening the international banking system. The Basel Committee on Banking Supervision (BCBS) consists of …