1. What is currency swap?

A currency swap is a foreign-exchange agreement between two institute to exchange aspects (namely the principal and/or interest payments) of a loan in one currency for equivalent aspects of an equal in net present value loan in another currency. For example, An American multinational company (Company A) may wish to expand its operations into Brazil. Simultaneously, a Brazilian company (Company B) is seeking entrance into the U.S. market. Financial problems that Company A will typically face stem from Brazilian banks' unwillingness to extend loans to international corporations. Therefore, in order to take out a loan in Brazil, Company A might be subject to a high interest rate of 10%. Likewise, Company B will not be able to attain a loan with a favorable interest rate in the U.S. market. The Brazilian Company may only be able to obtain credit at 9%. While the cost of borrowing in the international market is unreasonably high, both of these companies have a competitive advantage for taking out loans from their domestic banks. Company A could hypothetically take out a loan from an American bank at 4% and Company B can borrow from its local institutions at 5%. The reason for this discrepancy in lending rates is due to the partnerships and ongoing relations that domestic companies usually have with their local lending authorities.

2. What is ULIP?
A type of insurance vehicle in which the policyholder purchases units at their net asset values and also makes contributions toward another investment vehicle. Unit linked insurance plans allow for the coverage of an insurance policy, and provide the option to invest in any number of qualified investments, such as stock, bonds or mutual funds. OR ULIPs are a category of goal-based financial solutions that combine the safety of insurance protection with wealth creation opportunities. In ULIPs, a part of the investment goes

towards providing you life cover. The residual portion is invested in a fund which in turn invests in stocks or bonds. The value of investments alters with the performance of the underlying fund opted by you. Simply put, ULIPs are structured such that the protection element and the savings element can be distinguished and hence managed according to your specific needs, offering unprecedented flexibility and transparency.

3. What is DTAA?
Basically DTAAs are those pacts that seek to eliminate double taxation of income or gains arising in one country and paid to residents or companies of another. In other words, the treaty is devised to ensure that the same income is not taxed twice. In a bid to curb the growing menace of black money, the Government of India has written, under revised tax treaties, some countries to freeze the assets of Indians that have not been declared in India and repatriate the money. The main purpose of such agreements is to evolve a just system of taxation of different types of income in both the state of source and state of residence. Tax treaties such as Double Taxation Avoidance Agreement serve the purpose of providing protection to tax payers against double taxation and thus preventing the discouragement which taxation may provide in the free flow of international trade, international investment and international transfer of technology.

4. What is the difference between Rule 193 & 184?

Short Duration Discussions In order to provide opportunities to members to discuss matters of urgent public importance, a convention was established in the Lok Sabha in March 1953 whereby members could raise discussion for a short duration without a formal motion or vote thereon. This procedure was incorporated later into the Rules of Procedure under Rule 193 as Short Duration Discussion. Discussion under rule 193 does not involve a formal motion before the House. Hence, no voting takes place after discussions. The member, who gives notice makes a short statement and such of the members as have previously intimated to the Speaker, may be permitted to take part in the discussion. The member who raises the discussion has no right of reply. At the end of the discussion, the Minister concerned gives a brief reply.

Rule 184 of the Rules of Procedure provides that Save insofar as is otherwise provided in the Constitution or in the Rules of Procedure and Conduct of Business in Lok Sabha, no discussion on a matter of general public interest shall take place in the House except on a motion made with the consent of the Speaker. Broadly speaking, rule 184 allows voting while rule 193 doesn't.

5. Difference between vote - on - account & interim budget?

What is a vote-on-account? Vote-on-account literally means a vote on the accounts of the government. Usually, the annual budget is presented by the end of February after which it is discussed details of the budget are scrutinized by a Parliamentary committee and it is finally passed by mid-May. However, this time, this could be in the middle of elections or another government could be in power depending on the election schedule.

During elections and till a new government takes over, the caretaker government needs funds for various routine items of expenditure like staff salaries without which there would be a financial crisis. According to the Constitution, the government cannot spend any money without Parliament's approval. Hence, vote-on-account is taken whereby a government gets parliamentary approval to run the government for a few months, using funds drawn from the Consolidated Fund of India. How is a vote-on-account different from the full budget or an interim budget? While the words vote-on-account and interim budget are often interchangeably used, a vote-onaccount in the strict sense deals only with the expenditure side of the government's budget, whereas an interim budget has to include both expenditure and receipts. Generally, a vote-onaccount is for two or three months, usually till the time it is replaced by a regular budget. It cannot be for a period longer than six months as the Constitution stipulates that the gap between two Parliament sittings cannot be more than six months. A regular full budget is a complete statement on the financial position of the government for a full year based on expenditures during the period and proposals for financing them. Thus, it gives details of how money is to be spent and how it will be raised by the government. Why ever have a vote-on-account and not a full-fledged budget? Constitutionally, there is no distinction between a caretaker government and a regular one. The government could technically present a full budget. However, by convention, a government that is at the end of its tenure opts for a vote-on-account since it is regarded as improper that an outgoing government should impose its policies on its successor. There is also the fear that in election years a full budget would tempt governments to resort to populism while ignoring financial prudence. Interim budgets have also been used by governments taking office just before the financial year begins to get Parliamentary approval for immediate spending, giving them time to work out a more though-out budget later in the year.

By convention, what are the restrictions on a vote-on-account? Vote on account gives the revised estimates of expenditure incurred by the government and revised estimates of government revenue from different sources in the financial year coming to an end. These estimates provide an assessment of how efficiently the government spent its resources and how effective its policies of mobilizing tax and non-tax revenues were. Typically, no changes are made to tax and duty structures and no new schemes are announced. However it can extend coverage or allocate more money to an existing scheme. The finance minister can also use the vote-on-account speech to give indications of what he would like to do if given an opportunity after the elections. Thus, it is often used to indicate his intentions on economic policy just before elections and he can make many promises, something most finance ministers have done in their vote-on-account speeches.

6. Difference between WPI & CPI?

Wholesale Price Index (WPI) and Consumer Price Index (CPI) are two of the many indices that play the integral part in setting the goods price in the market. Without these two indices, the market would fall into chaos. These indices are great tools for different businesses in keeping track of the price of their goods. WPI Wholesale Price Index (WPI) is used in some countries as a basis for the inflation or deflation rate in the market. The traded goods and services amidst different manufacturers and corporations is the core of the WPI. The WPI can be established using the status of the five groups in basic human commodity namely: manufacturing, agriculture, quarrying, mining, and in the export/import industry. CPI Consumer Price Index or CPI measures the average prices of goods and services that we, the consumers, have paid for. There are 8 groups in which CPI is used. They are: education, apparel, foods and beverages, communication, transportation, recreation, housing, and medical care. Other services like school and government registration fees and electricity and water bills are sometimes counted as well. Difference between WPI and CPI To put it in a very simpler way in which the majority could understand, Wholesale Price Index is the middle point of all the prices that the merchants pay for certain goods or services from the manufacturers or traders. While the Consumer Price Index, on the other hand, is also the middle point of all the prices that the consumers, homeowners and private sectors have paid for particular products and services. These two indices are very important factors in determining how strong a countrys economy is. WPI measures the deflation and CPI is for inflation.

Even though you are not an economic-person, its still best to know how the prices of the goods that you are buying in the market are calculated. If youre going to buy certain products in bulk, its pretty sure that its less compared to the standard retail price (SRP) which is synonymous to consumer price.
In brief:

Wholesale price index is the basis for the economic deflation rate while consumer price index is the basis for the inflation rate. Wholesale price index is the middle point of the sum of all the goods bought by the sellers/traders whereas consumer price index is the middle point of the sum of all the goods bought by consumers/homeowners.

7. Is planning commission political body or quasi political body?

Planning Commission is not political body, it was set up by a Resolution of the Government of India in March 1950 in pursuance of declared objectives of the Government to promote a rapid rise in the standard of living of the people by efficient exploitation of the resources of the country, increasing production and offering opportunities to all for employment in the service of the community. So it is non-constitutional or extra-constitutional body.

8. What is wind fall tax?

A tax levied by governments against certain industries when economic conditions allow those industries to experience above-average profits. Windfall taxes are primarily levied on the companies in the targeted industry that have benefited the most from the economic windfall, most often commodity-based businesses.

9. What does the term Kite Flying means in finance?

the practice of trying to impress people by putting forward grand plans

10.What is market capitalization weighted methodology?

A capitalization-weighted (or "cap-weighted") index, also called a market-value-weighted index is a stock market index whose components are weighted according to the total market value of their outstanding shares. Every day an individual stock's price changes and thereby changing a stock index's value. The impact that individual stock's price change has on the index is proportional to the company's overall market value (the share price multiplied by the number of outstanding shares), in a capitalization-weighted index.

11.What is PCR?
The polymerase chain reaction (PCR) is a biochemical technology inmolecular biology to amplify a single or a few copies of a piece of DNA across several orders of magnitude, generating thousands to millions of copies of a particular DNA sequence.