HOW TO PREPARE FOR CURRENT EVENTS: Dr. Shivram Krishnan

Nearly every entry level examination for a job or an interview for a job lays some importance on the awareness about current events. The typical university or college education somehow is unable to persuade students to keep abreast of the events unfolding every day, either as part of a curriculum or part of an examination. Consequently the student loses track of events and finds it difficult to follow them during later preparations.
One can keep track of current events through newspapers, magazines, and TV. The newspaper is the most important source. Magazines like ‘Outlook’, ‘The Week’, ‘Frontline’ etc. serve the purpose of providing background and analysis on significant events. The same could be read through vernacular publications also. 
The averseness to reading a newspaper or magazine could be overcome by forming or joining a group who come together to share and argue whatever each one reads. This would help in developing and confirming view points, opinions, filling gaps on unread events, developing debating or discussing skills and reinforce the learning. It also helps in clarifying doubts, clearing unfounded perceptions and getting newer insights.
Current events could be classified into social, economic, socio-economic, legal, government policies, sports etc. Not everyone may be interested in all types. And therefore sharing and discussing covers aspects which one individual alone may not do. The classification helps to focus on issue based reading instead of hovering about the newspaper aimlessly. If you are able to create a file with such classification and collect the cuttings of the news items it always serves as quick reference during the time of the examination. The practice can be discontinued once you succeed in an examination and settle down in a career.
It serves, to be a little disciplined, when reading a news item.   A pencil/highlighter and a dictionary always help. Underline the essence of the item you are reading and also some of the words which you are not clear about. Look up the dictionary and write the meaning below or above such words. This practice helps you in many ways. It increases your level of concentration, enhances your focus on the main part of the news-item, heightens the ability to recall and adds up to your vocabulary. Initially it is tough to follow this day after day; however with a little patience it becomes exciting as it start showing its impact during conversations with your friends. 
The practice on current events could continue for a year by which time you would have greatly benefited from the exercise. You would be fairly proud of yourself for widening your knowledge horizon.

Hellllooooo...

I have but one question . . . "How hard is to say hello?"

"Hellllooooo" is what I'd like to just say sometimes as I walk by some people - managers - in the morning.

When you become a manager, director, or what have you, it's not a license to become arrogant. I greet everyone I know - and then some - the first time I encounter them each day - and even throughout the day.

Your greeting, or lack of, tells a lot about you. It shows staff how approachable, or not, you are. It shows staff how interested, or not, you are in them. It shows staff how appreciative, or not, you are of them.

You may not be in the best mood and not really want to converse with people, but if someone extends a greeting to you, you ARE expected to return the greeting. Even just a simple "hello" or "hi" will do. And don't forget eye contact.

Just as we tell staff who work with customers to leave their problems at the door before punching in, you as a leader, need to do the same thing when dealing with staff and co-workers. Remember: all eyes are on you.

How stock exchanges came into being

Markets have come a long way from a few people huddled under a tree haggling and shouting out their buy or sell prices.

There are markets for derivatives, insurance, re-insurance, stocks, bonds, contracts, metals, agriculture, bullion and real estate. Ever wondered how it all began? Read on to find out.

NOT SO PERSONAL

The earliest instances of trading or broking evolved in order to avoid personal losses caused by individual bets on government debt, agricultural debt or risky shipping and trading ventures. The odds of going broke, given the lack of institutions or enforcement led to French monarchy creating the ‘courratiers de change' in the 12{+t}{+h} century. These brokers helped monitor and disburse agricultural debt.

Around the same time, traders in the Benelux region (the Netherlands, Belgium and Luxembourg) gathered in front of an inn owned by the Ter Burze family in Bruges to conduct transactions. The term ‘bourse' finds its origin in this family's name. These traders dealt with bills of exchange for agricultural commodities.

SOWING WILD OATS

Exchanges cropped up in various European cities such as Bruges, Lyons and Amsterdam. Until the 16th century, ‘markets' remained a loose gathering of traders and merchants who dealt in debt or commercial bills.

The idea of ‘equity' or shared ownership of a business did not exist until this point in time. The owner of a venture was personally liable for losses.

For example, if a ship loaded with gold bought on credit was lost at sea, the ship's owner would have to take the losses. He would owe the lenders all that he owned including his turkish bath.

All that changed with the advent of the Dutch, French and British East India companies which had monopolies over trade. This came at a heavy price.

Shipping and trading were expensive exercises and rough weather, pirates, hostile locals, spoilt produce, diseases and battles among the various trading companies hurt the odds of profits.

To get around this, the Dutch East Indies Company became a joint-stock company, the first one to issue stocks to several shareholders, with the idea of sharing profits or losses. Several trading companies such as the British East India Company followed suit.

NOVEL TRAITS

This achieved two powerful goals: First, the companies became a distinct legal entity, separate from those who owned it. Second, it popularised the concept of limited liability.

The owners were personally liable only to the extent of what they invested in it. Arguably, the most important idea that stems from this is of the reduced risk associated with ownership. This allowed individuals to pour their limited capital into several opportunities rather than bet heavily on one toss of a coin.

The idea caught on quite rapidly. Exchanges that traded the stocks of these companies began to crop up across the globe. Most of the exchanges, much like their progenitors, found their origins in coffee shops, public circles or other areas where traders huddled together to transact.

Stock exchanges such as the London Stock Exchange, New York Stock Exchange started out in a coffee shop and under a buttonwood tree respectively. India's Bombay Stock Exchange was founded in 1875 under a banyan tree.

HOW THINGS CHANGE

Organised markets for transacting in stock, bonds and commodities are also seen as an efficient consensus-driven way to arrive at the price of an asset or contract. This is due to the participation of several individuals with varying levels of competence and information. Organised trading also kept the peace by legally making people and organisations stick with their side of the bargain.

Markets have come a long way from a few people huddled under a tree haggling and shouting out their buy or sell prices. Ownership of stocks now straddles countries and competition to control these economic beings is immense.

Stock exchanges are closely watched by governments due to their central role as gatekeepers of hard-earned capital.

Institutions such as the New York Stock Exchange, London Stock Exchange, London Metal Exchange, Bombay Stock Exchange, National Stock Exchange and other bourses across the world today play a central role in putting a price tag on the economy and its assets.

                          

Budget

When you hear the word “budget”, what does it mean do you? If you’re like most people, you probably think of it as an unpleasant activity that means you have to financially deprive yourself. This couldn’t be further from the truth, yet this is the typical reason that most budgets fail.

Think of it as Managing Money

Your budget isn’t created to make your life miserable; it is simply a guide to help you manage your money. We all have income, and we all have expenses, and without proper allocation of the money something may fall short. The goal when creating a budget is to lay the foundation for allocating what portion of your income is required to cover each expense.

A Budget is Like a Recipe

If you are going to bake a cake from scratch, you’ll probably want to use a recipe to ensure it bakes properly and tastes delicious. A recipe is simply a list of required ingredients along with the quantity, followed by instructions on how to add them together. If the recipe is followed properly, you will be rewarded with a tasty final product.

Your personal finances aren’t much different. Your income is the sum of ingredients, and your expenses are the quantities to use, while the budget tells you how to put it all together. With a cake recipe, if you’re short an egg or put in too much flower, the cake will not taste right or even bake properly at all. The same goes for your finances. If you spend too much money on one expense it may make you short on another expense, which would yield results that are less than expected.

Take Control of Your Money

When you create a budget, you take control of your money so that it doesn’t control you. Don’t let the negative image of a budget making your life miserable keep you from taking control. You can still enjoy yourself and even include discretionary or “fun money” in your budget. The goal is to simply create an outline for your money that puts you in control so that it doesn’t control you.

WHAT IS SLR? What is CRR? What is BANK RATE?, What are REPO AND REVERSE REPOs?

What is Bank rate?   Bank Rate is the rate at which central bank of the country  ( Bank Rate in India is decided by RBI)  allows finance to commercial banks. Bank Rate is a tool, which central bank  uses for short-term purposes. Any upward revision in Bank Rate by central bank is an indication that banks should also increase deposit rates as well as Base Rate /Benchmark Prime Lending Rate.  Thus any revision in the Bank rate indicates that it is likely that interest rates on yourdeposits are likely to either go up or go down,  and it can also indicate  an increase or decrease in your EMI.

What is CRR? or What is CRR Ratio or What is CRR Rate :   The Reserve Bank of India (Amendment) Bill, 2006 has been enacted and has come into force with its gazette notification. Consequent upon amendment to sub-Section 42(1), the Reserve Bank, having regard to the needs of securing the monetary stability in the country, RBI can prescribe Cash Reserve Ratio (CRR) for scheduled banks without any floor rate or ceiling rate (  [Before the enactment of this amendment, in terms of Section 42(1) of the RBI Act, the Reserve Bank could prescribe CRR for scheduled banks between 3 per cent and 20 per cent of total of their demand and time liabilities].

RBI uses CRR either to drain excess liquidity or to release funds needed for the growth of the economy from time to time. Increase in CRR means that banks have less funds available and money is sucked out of circulation. Thus we can say that this serves duel purposes i.e.(a)  ensures that a portion of bank deposits is kept with RBI and is totally risk-free, (b) enables RBI to  control liquidity in the system, and thereby, inflation by tying the  hands of the banks in lending money.

What is SLR? : Every bank is required to maintain at the close of business every day, a minimum proportion of their Net Demand and Time Liabilities as liquid assets in the form of cash, gold and un-encumbered approved securities. The ratio of liquid assets to demand and time liabilities is known as Statutory Liquidity Ratio (SLR).  RBI is empowered to increase this ratio up to 40%.  An increase in SLR  also restrict the bank’s leverage position to pump more money into the economy.

Repo (Repurchase) rate is the rate at which the RBI lends shot-term money to the banks against securities. When therepo rate increases borrowing from RBI becomes more expensive.  Therefore, we can say that in case,  RBI wants to make it more expensive for the banks to borrow money, it increases the repo rate; similarly, if it wants to make it cheaper for banks toborrow money, it reduces the repo rate

Reverse Repo rate is the rate at which banks park their short-term excess liquidity with the RBI.  The banks use this tool when they feel that they are stuck with excess funds and are not able to invest anywhere for reasonable returns.     An increase in the reverse repo rate  means that the RBI is ready to borrow money from the banks at a higher rate  of interest. As a result, banks would prefer to keep more and more surplus funds with RBI.

Thus, we can conclude that Repo Rate signifies the rate at which liquidity is injected in the banking system by RBI, whereas Reverse repo rate signifies the rate at which the central bank absorbs liquidity from the banks

How to answer these 6 common questions in an interview

The saga that began with filling applications and written exams is now edging towards its end with the calls trickling in beginning the season of group discussions followed by the final frontier- the Personal Interview.

The personal interview is that final opportunity for you to make that lasting impression that differentiates you from the rest.

It takes right amount of knowledge, commitment, and hard work to come out on top and the same holds true for your personal interview.

1. Tell me about yourself

This is the oft asked and most abused question in all PIs.

Being asked to talk about your favorite subject- you, may seem to be the easiest task. However, candidates tend to underestimate the power of this question and usually ramble on about irrelevancies and veer off topic.

This is the point in the interview where the panel shall form their initial opinions about you as a person and you want to come across as a focused, goal oriented individual.

Remember what you have said in your application forms and try not to transgress from or contradict what you have already mentioned in the form.

Tell the panel about what kind of person you are, what your special interests and achievements are; elaborate on your goals and your dreams.

Give the interviewer a glimpse into your persona, rather than being standoffish.

Keep the introduction crisp and concise, keeping in mind what the interviewer shall be interested in knowing about you.

Don't try too hard to impress the interviewer. They meet with amazingly qualified candidates year after year.

Be confident in your accomplishments to date, but most importantly, be yourself and show humility as you reflect on the many things you've yet to learn and experience.

2. Tell me about your strengths and weaknesses

This question seems like a softball lob, but be prepared.

You don't want to come across as egotistical or arrogant. Neither is this a time to be humble.

Don't come up with puerile answers such as 'weaknesses are for mediocre' or 'my biggest weaknesses are my biggest strengths'; sob stories are a strict no-no.

Also, don't come up with weaknesses that could not be rectified or those you have not worked upon to improve. Tell about your weaknesses and what you have done so far to overcome them.

Don't use words like 'My strengths are...' Ideally, say – 'I am a person who believes in perseverance' etc. There is much more to life than great resumes and percentiles that admission interviewers look for in candidates.

Enthusiasm, willingness to learn, positive approach, contributions in different areas, and way of carrying oneself are the strengths that make one candidate different from another.

3. Questions related to academics

Please keep in mind that you have applied to an academic institution and even if your sole objective in joining a B-school is only to get a good job, the faculty members of a good B-school take academics seriously.

Revisit your course books and strengthen all your fundamentals.

Usually, the panel asks questions that will test your knowledge and understanding of concepts and not your memory.

4. Questions related to work experience

Never badmouth your previous industry, company, board, boss, staff, employees or customers. This rule is inviolable: never be negative.

Any mud you hurl will only soil your suit. Especially avoid words like "personality clash", "didn't get along", and similar phrases which cast a shadow on your competence, integrity, or temperament.

It also suggests to the panel that you may trash the b-school in future if your career plans do not work out the ideal way.

Give well structured answers focusing on your achievements and your professionalism.

Answer precisely and mention how your experiences at work helped hone your knowledge/analytical skills/people skills/soft skills.

5. Tell me about your hobbies and interests

You should talk about genuine hobbies that you follow.

Don't say 'coin collection' is your hobby if it wasn't pursued passionately and if your interest and knowledge in Numismatics is lacking.

You are better off talking about a specific couple of authentic interests you have rather than making false claims and faking interests.

Please ensure you are well versed in your area of interest as the panel may delve into a discussion about the same.

6. Why MBA? Why us? Why you?

Make a connection between your career goals and what the B-school can offer you; explain to the interviewer why attending a B-school, especially this one, is the next best step in your career.

Prepare adequately for these questions, do a thorough research on the B-school and the program it offers, talk to alumni and current students if possible to find out more about the B-school.

The interviewer must answer this question favorably in his mind to give you a seat in his B-school. So help him out!

Walk through the reasons why you want to pursue a MBA program at the particular B school, and follow each with a reason why you are the ideal candidate for them to have at their B-school.

The level of competition for the top schools is fierce; there panel meets plenty of good candidates and you need to differentiate yourself.

Ensure to do this by talking about your unique characteristics that add value, your USP (Unique Selling Proposition) which is not just another commonplace characteristic and support by examples that demonstrate its existence.

Although you need to sell yourself to the panel, do not do so in a boisterous manner where you may come across as an arrogant, over-confident egoist.

Be respectful of the panel and appreciate their knowledge and experience. Maintain a dignified, polite stance and establish yourself as a refined and exceptional individual.