July 2012

How to detect forged Bank Notes ~ RBI’s informative Site ‘PaisaBoltaHai’

bank notes, Counterfeit notes, Fake currency, Fake rupee note, indian rupees, Indian-Rupee, RBI, Paisa Bolta Hai


Reserve Bank of India has launched the above mentioned informative site issued in the public interest. The site helps in understanding and identifying a forged bank note. While receiving banknotes, it will be a good idea to develop the habit of checking the genuineness of the notes, because, being a forged note,  ab initio,  it has no value.

June 2012

May 2012

Present Value (PV) Basics….Formulae

Present Value, PV, Formulae, Time Value of Money, Tutorials, basics, Money, Investment fundamentals, Cash Flow

Terms uses :
PV = Present Value;
A = Annuity;
r = interest rate;
g = growth rate;
n = number of periods;
CF = Cash Flow;
“A bird in the hand is worth two in the bush” – Miguel de Cervantes
If someone owes you 10,000/- , it is advantageous to get the money today If you get this money today:
–> You could earn interest and invest it and you will receive this quantity plus some other amount in the future.
–> You can use it to pay your debts and therefore, lower the interest amount paid on your debt.
–> Or you can spend it and enjoy it as you wish.
More on Time Value of Money here

April 2012

March 2012

January 2012

Why deflation can be equally if not more harmful than inflation?

Money, Deflation, Inflation, Economy, GDP, Crisis, Current Account Deficit, Money Supply , Interest Rates

Deflation happens when there is a decrease in the general prices. The prices can be of goods and services. This is exactly the opposite of what happens in inflation. In case of inflation there is a general increase in the prices. The value of money reduces in inflation and the value of money increases in case of deflation. This means that with the same amount of money, you can buy more goods and services at later period of time due to decrease in the prices.

Deflation can happen when there is reduction in spending either by government, personal spending or investment spending. It can happen when either of the following happens :

  1. Decrease in Money Supply
  2. Increase in supply of Goods or services
  3. Decrease in demand for goods or services
  4. Increase in demand for money

On the surface it appears that increase in value of money is a good thing. In fact it is good for those who are holding cash or for those who are creditors.