on 28-Jan-2018 (Sun)

Cloze deletion is a sentence with its parts missing and replaced by three dots. Cloze deletion exercise is an exercise that uses cloze deletion to ask the student to fill in the gaps marked with the three dots. For example, Bill ...[name] was the second US president to go through impeachment.

If you are a beginner and if you find it difficult to stick to the minimum information principle, use cloze deletion! If you are an advanced user, you will also like cloze deletion. It is a quick and effective method of converting textbook knowledge into knowledge that can be subject to learning based on spaced repetition. Cloze deletion makes the core of the fast reading and learning technique called incremental reading.

The purpose of this reading is to build an understanding of the importance of market structure. As different market structures result in different sets of choices facing a firm’s decision makers, an understanding of market structure is a powerful tool in analyzing issues such as a firm’s pricing of its products and, more broadly, its potential to increase profitability. In the long run, a firm’s profitability will be determined by the forces associated with the market structure within which it operates. In a highly competitive market, long-run profits will be driven down by the forces of competition. In less competitive markets, large profits are possible even in the long run; in the short run, any outcome is possible. Therefore, understanding the forces behind the market structure will aid the financial analyst in determining firms’ short- and long-term prospects.

The idea (of d-separation) is to associate "dependence" with "connectedness" (i.e., the existence of a connecting path) and "independence" with "unconnected-ness" or "separation".
The only twist on this simple idea is to define what we mean by "connecting path", given that

1. we are dealing with a system of directed arrows
2. in the graph some vertices correspond to measured variables, whose values are known precisely.

To account for the orientations of the arrows we use the terms "d-separated" and "d-connected" (d connotes "directional").

Government securities are coupon bearing instruments which are issued by RBI on behalf of Government of India. Government securities have maturity dates ranging from less than 1 year to a max of 30 year.

Debentures are bonds issued by a company. It has fixed rate of interest usually payable half-yearly, on specific dates and the principal amount repayable on a particular date on redemption of debenture. It is an unsecured debt

The Mumbai Interbank Offered Rate (MIBOR) is calculated everyday by the National Stock Exchange of India (NSEIL) as a weighted average of lending rates of a group of banks, on funds lent to first-class borrowers. 26. It is the interest rate at which banks can borrow funds, in marketable size, from other banks in the Indian interbank market. 27. The MIBOR was launched on June 15, 1998 by the Committee for the Development of the Debt Market, as an overnight rate.

LIBOR or ICE LIBOR (previously BBA LIBOR) is a benchmark rate that some of the world’s leading banks charge each other for short-term loans.
22. It stands for Intercontinental Exchange London Interbank Offered Rate and serves as the first step to calculating interest rates on various loans throughout the world.

23. LIBOR is administered by the ICE Benchmark Administration (IBA), and is based on five currencies: U.S. dollar (USD), Euro (EUR), pound sterling (GBP), Japanese yen (JPY) and Swiss franc (CHF).
24. It serves seven different maturities: overnight, one week, and 1, 2, 3, 6 and 12 months. There are a total of 35 different LIBOR rates each business day. The most commonly quoted rate is the three- month U.S. dollar rate.

Features of Government Securities 1. Issued at face value. 2. No default risk as the securities carry sovereign guarantee. 3. Ample liquidity as the investor can sell the security in the secondary market. 4. Interest payment on a half yearly basis on face value. 5. No tax deducted at source. 6. Can be held in Demat form

The Reserve Bank of India was established on April 1, 1935 in accordance with the provisions of the Reserve Bank of India Act, 1934.

The NSEIL launched the 14-day MIBOR on November 10, 1998, and the one month and three month MIBORs on December 1, 1998. 29. Since the launch, MIBOR rates have been used as benchmark rates for the majority of money market deals made in India.

FII can invest up to 49 % in Stock Exchange in India.

Corporatization is the process of converting the organizational structure of the Stock Exchange from a non-corporate to a corporate structure. 4. Demutualization refers to the transition process of a Stock Exchange from a mutually owned association to a shareholders-owned company.

Commercial papers are borrowing of a company from the market. These money market instruments are issued for 90 days.

Any company making a public issue or a listed company making a RI of a value of more than Rs 50 lacs is required to file a draft offer document with SEBI for its observations. This observation period is only 3 months.

DIP stands for Disclosure and Investor Protection guidelines

Offer document means prospectus in case of public issue. 20. Offer document means an offer for sale and letter of offer in case of a RI. 21. Offer documents are filed with Registrar of Companies and Stock Exchanges. 22. A draft offer document means the offer document in a draft stage. 23. The draft offer documents are filed with SEBI. 24. The period of filing draft offer document is at least 21 days prior to that of offer document.

RHP (Red Herring Prospectus) is a prospectus which doesn’t have details of either price of number of shares being offered or the amount of issue. But the number of shares and the upper and lower price bands are disclosed. 26. In case of FPO, the RHP can be filed with Registrar of Companies without the price band. The price band is notified one day prior to the opening of the issue by way of an advertisement.

By now it should be clear that economists are model builders. In the previous reading, we examined one of their most fundamental models, the model of demand and supply. And as we have seen, models begin with simplifying assumptions and then find the implications that can then be compared to real-world observations as a test of the model’s usefulness. In the model of demand and supply, we assumed the existence of a demand curve and a supply curve, as well as their respective negative and positive slopes. That simple model yielded some very powerful implications about how markets work, but we can delve even more deeply to explore the underpinnings of demand and supply. In this reading, we examine the theory of the consumer as a way of understanding where consumer demand curves originate. In a subsequent reading, the origins of the supply curve are sought in presenting the theory of the firm.

This reading is organized as follows:

Section 2 describes consumer choice theory in more detail.

Section 3 introduces utility theory, a building block of consumer choice theory that provides a quantitative model for a consumer’s preferences and tastes.

Section 4 surveys budget constraints and opportunity sets. Section 5 covers the determination of the consumer’s bundle of goods and how that may change in response to changes in income and prices.

Section 6 examines substitution and income effects for different types of goods.

In mathematics, more specifically in abstract algebra and linear algebra, a bilinear form on a vector space V is a bilinear map V × V → K , where K is the field of scalars.

In studying decision making by consumers and businesses, microeconomics gives rise to the theory of the consumer and theory of the firm as two branches of study.

The theory of the consumer is the study of consumption—the demand for goods and services—by utility-maximizing individuals. The theory of the firm, the subject of this reading, is the study of the supply of goods and services by profit-maximizing firms. Conceptually, profit is the difference between revenue and costs. Revenue is a function of selling price and quantity sold, which are determined by the demand and supply behavior in the markets into which the firm sells/provides its goods or services. Costs are a function of the demand and supply interactions in resource markets, such as markets for labor and for physical inputs. The main focus of this reading is the cost side of the profit equation for companies competing in market economies under perfect competition. A subsequent reading will examine the different types of markets into which a firm may sell its output.

The study of the profit-maximizing firm in a single time period is the essential starting point for the analysis of the economics of corporate decision making. Furthermore, with the attention given to earnings by market participants, the insights gained by this study should be practically relevant. Among the questions this reading will address are the following:

• How should profit be defined from the perspective of suppliers of capital to the firm?

• What is meant by factors of production?

• How are total, average, and marginal costs distinguished, and how is each related to the firm’s profit?

• What roles do marginal quantities (selling prices and costs) play in optimization?

This reading is organized as follows:

Section 2 discusses the types of profit measures, including what they have in common, how they differ, and their uses and definitions.

Section 3 covers the revenue and cost inputs of the profit equation and the related topics of breakeven analysis, shutdown point of operation, market entry and exit, cost structures, and scale effects. In addition, the economic outcomes related to a firm’s optimal supply behavior over the short run and long run are presented in this section.

In mathematics, a field is a set on which addition, subtraction, multiplication, and division are defined, and behave as when they are applied to rational and real numbers.

As different market structures result in different sets of choices facing a firm’s decision makers, an understanding of market structure is a powerful tool in analyzing issues such as a firm’s pricing of its products and, more broadly, its potential to increase profitability.