Doubt Clearance Thread: UPSC 2021

upsc2020

"When in doubt, observe and ask questions. When certain, observe at length and ask many more questions."

Created this thread as a one stop solution for all members so that all the doubts wherein any conceptual clarification is required can be solved here.

jack_Sparrow,curious_kidand122 otherslike this

4.2k comments

upsc2020 .

commented 4 year(s) ago

chikuiasbanosaid
@AlexanderSupertramp when repo rate increases,is it likely to happen that" foreign institutional investors bring more capital into the country"??

central banks increase repo rate as this acts as a disincentive for banks to borrow from the central bank. This ultimately reduces the money supply in the economy and thus helps in arresting inflation. In such situation FII won't bring more capital.

keephustling,

BD .

commented 4 year(s) ago

@chikuiasbano d?

keephustling,

keephustling .

commented 4 year(s) ago

@upsc2020 but when repo rate increases, it leads to increase in interest rate too. increase in interest rate incentivises foreign investors.

keephustling .

commented 4 year(s) ago

@Freakhoto but when repo rate increases, it leads to increase in interest rate too. increase in interest rate incentivises foreign investors.

so i thought option C.

can you clarify please?

KratosOfPUBG .

commented 4 year(s) ago

This is somewhat off topic butumm..

If i have mild fever on the day, will i be allowed to take the exam

BD .

commented 4 year(s) ago

@chikuiasbano because foreign investors quota are limited when they invest in G secs and all.. ( which mostly depends on repo rate) but they can invest in securities market which have less direct relationship with repo rate...

Foreign investment always attract some kind of restrictions such as India doesn't have a full capital Convertibility also rbi can put limit such 6% only investment in g sec...

So due to all this there might not full representation of decreasing repo attracting a lot of investment

keephustling,

keephustling .

commented 4 year(s) ago

@Freakhoto

https://www.thehindu.com/opinion/columns/Chandrasekhar/on-high-interest-rates/article6473162.ece

i request you to please go through this article. hardly 2-4 minutes time consumption will be there. :)

thepolicydreamer .

commented 4 year(s) ago

CITES secretariat is administered by UNEP but it was signed in a meeting of IUCN members. Will it be considered an agreement under UNEP?

Sorry for asking such silly doubts at the last moment, but mind is getting stuck on such things.

keephustling .

commented 4 year(s) ago

@thepolicydreamer under UNEP. take care and chill :) everything will go fine.

thepolicydreamer,

thepolicydreamer .

commented 4 year(s) ago

chikuiasbanosaid
@thepolicydreamer under UNEP. take care and chill :) everything will go fine.

Thanks :)

keephustling .

commented 4 year(s) ago

@upsc2020 https://www.thehindu.com/opinion/columns/Chandrasekhar/on-high-interest-rates/article6473162.ece

i request you to please go through this article. hardly 2-4 minutes time consumption will be there. :)

simransingh .

commented 4 year(s) ago

How is strategic disinvestment different from privatisation?

dragon_rider .

commented 4 year(s) ago

@simransingh There isn't a difference. Strategic disinvestment is basically disinvestment along with privatization. Privatization means the public asset is sold so that more than 51% is held by private entities. Disinvestment simply means that assets are sold and ownership is diluted. That is, in the case of disinvestment the government might sell some public assets but it would still hold more than 51% of the ownership stake. In strategic disinvestment, the govt. sells enough public assets so that private entities own more than 51% i.e. privatization.