Financial Terms

------------------------------------------------- Finance Assignment What is current estimate deficit? A untaughts current account deficit consists of merchandise cunning and invisible trades income and expenditure from export and entailment of goods and services. Deficit arises when total export is lesser than total import. Where India does stands? Indias current account deficit likely to increase 3% of the GDP. What be the reasons for high trade deficit? Reasons are many a(prenominal) like portfolio investment inflows, long-term capital inflows, and overseas borrowings. What are riskinesss posed by a widening current account deficit? ------------------------------------------------- Risks like: serious problem for economy, debt payment problems, contract on local currency, and outflow of foreign capital. GDP saga: course 1960 to 1972: emerging market economics is 75% of world GDP. 1973 to 1985: about 72% of world GDP 1986 to 2009: around 65% of world GDP ------------------------------------------------- 2008 to 2009: around 55% of world GDP What are connects? Bonds are one of fiscal instruments through which an investor can lend money to an entity in fall for a periodic interest payment and repayment of add money after a certain years.

What is the inflation risk in investing in regular bonds? The fixed roll of return demanded by investor is based on inflation expectation. in that location are chances that actual inflation rate is higher than investor judge inflation rate at this time investor will grow loss or he will earn contradict return. The risk is particularly very high in causal agency of long term tenure bonds that having maturities as long as 30 years. How do inflation indexed bonds reduce risk for investor? This bond assures fixed real rate of return to the investor. Here any(prenominal) return is fixed. Investors return varies from year to year as inflation is fluctuating. As example is given that if you have invested Rs. vitamin C for 5% interest rate after a year, inflation... If you desire to get a full essay, order it on our website: Orderessay

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