Indian Current Affairs: 26.09.2007

These funds cannot issue new units except in case of bonus or rights issue. The market price at the bourse could vary from the NAV on account of demand-supply situation and other market factors.

They usually don’t have a fixed maturity period and are available for subscription and redemption on an ongoing basis. New investors can join by directly applying to the mutual fund at NAV related prices.

The planning commission has estimated that about $492 bn would be needed to fund the infrastructure requirements in the Eleventh Plan (2007-2012). 70% of this is expected to come from public sector while the remaining 30% from the private sector.
Of the $492 bn, about $240 bn is expected in the form of debt. But the Commission has identified that about $201 bn only would be available leaving a gap of about $39 bn.

It was in 2003 in England county circuit.
But now it has become very popular and it is quite likely that it will overshadow the One Day International format at some point of time in the future. But let’s wait and watch.

SSA Aiyar argues that it can’t. A rate cut can’t fix the real economy he says. Even if a recession is averted it would be for reasons other than the Fed’s monetary policy. While explaining his stand, he notes what Milton Friedman would have felt about the rate cut.
Injection of money into the economy would raise nominal GDP (which is real output plus inflation). In the first few months, most of the increase might be in real output, but prices would soon catch up, and then the entire increase in nominal GDP would be on account of inflation. Real GDP would not be affected at all. It would be determined in the long run not by money but other factors such as innovation, productivity, entrepreneurship and investment.
For a comparison of the views of Keynes and Milton Friedman, refer to this article in our Discover It blog.

Why should the US be concerned about falling long term interest rates at this juncture?

Before we try to understand the why of it, we need to know the ‘what’ of it. As many countries are shying away from investing their forex reserves in the US treasury bills / bonds (which are long term), the long term interest rates are falling. Instead, countries are investing in the short term treasury bills as they are adopting a wait and watch attitude on the economic fallout of the subprime crisis. A fall in the long term interest rates implies that majority of the investing countries in the US are worried about the long-term outlook of the US economy. This doesn’t augur well for the US.
A rise in short term rates and simultaneous fall in long term rates implies that the economy is teetering on the recession mode.

Type I: It is the most common form of diabetes in children and occurs when the immune system goes haywire and starts attacking insulin producing cells in the pancreas.
Type II: This usually occurs in adults and is linked to poor diet and lack of exercise.

‘Eklavya’, an Amitabh Bachchan starrer is shortlisted as an entry into this year’s Oscars in foreign film category. It still has to go through another round of screening before it becomes a nominee film.

It is considered the most significant early influence on the extensive historical process that led to the rule of constitutional law. It was signed by King John of England in 1215.
It is reported that only around 17 original versions of the charter still exist.
A copy of it which was purchased by the Texan billionaire Ross Perot (at one time an American Presidential aspirant) for $1.5 mn in 1984 is up for auction now. It is expected to fetch about $20 mn to $30 mn.

The two rovers that are currently operating on Mars are Opportunity and Spirit.
Phoenix, a space probe for Mars was launched in August 2007. It is expected to land on Mars in May 2008.

Indian Current Affairs