NTA UGC NET/JRF Exam, Dec. 2020/June 2021 Commerce (Morning-Shift)

Content validity
A test that contains a fair sample of the tasks and| skills actually needed for the job in question is content validity.

Content validity reffers to how to how accurately an assessment or measurement tool taps into the various aspects of the specific construct in question.

Content validity is most often measured by relying on the knowledge of people who are familiar with the| construct being measured.

Capacity and lower needs are a primary determent of organisational structure.

Capacity refferce to all components that takes for an organisation to achieve its mission from physical resources to people to ideas.

Lower Needs - Here, related with Maslow's Hierarchy| of Needs Theory. Which means the physiological and| the safety needs constitute lower-order needs.

An act ina way that result in the greatest good for the greatest number is the utilitarian principle.

Utilitarianism hold that the most ethical choice is the one that will produce the greatest good for the greatest number. As such it is only moral frame work that justify war.

Moreover, It is the most common approach to business ethics because of the way that is accounts for casts and benefits.

The four way test - The four way test of the things we think, say or do is a test used by Rotarians world-wide as a moral code for personal and business relationships.

Kant's categorical imperative :- contains two major suppositions -
1. We must act on the basis of goodwill rather than purely on self interested motives.

2. We must never treat others as means to wards ends benefitting ourselves without consideration of them also as ends in themselves.

The Golden rule - Is the principle of treating others as one wants to be treated.

People repeat behaviours that bring the satisfaction and pleasure and stop those that bring them! dissatisfaction or pain is known as Law of effect

Law of exercise - Means that drill or practice helps in increasing efficiency and durability of craning.

Law of Readiness - When any conduction unit is ready to conduct (An individual ready to learn something) jor it to do so is satisfying.

Basel 1 is a set of international banking regulations established by the Basel committee on banking supervision (BSBS)

It prescribes minimum capital requirement for financial institution, with the goal of minimizing credit risk.

Under Basel I, banks that operate internationally were required to maintain at least a minimum amount of capital (8%) based on their risk weighted assets.

Monetary control is exercised through cash reserve ratio and statutory liquidity ratio.
RBI is the main body that controls the monitory policy in India

Cash reserve Ratio & statutory liquidity ratio are the instruments of monetary policy by which RBI control the supply of money in the economy

Cash reserve Ration CRR is a specified amount of bank deposits which banks are required to keep with the RBI in the form of reserves or balances. The higher the CRR with the RBI the lower will be the liquidity in the system and vice versa.

Statutory Liquidity Ratio (SLR) - All financial intuition have to maintain a certain quantity of liquid assets with themselves at any point in time of their total time and demand liabilities.

The Derivatives market is the financial market for derivatives, financial instruments like futures contracts or options, which are derived from other forms of assets (underlying assets)

Advantages of Derivatives arch
1. Derivative contracts are used for hedging risk arising out of fluctuation in price movements.
2. Derivative contracts helps in ascertaining the price of underlying assets.
3. Trading of these instruments involves low transaction cost which is beneficial for investors.
4. It provides access to unavailable market and assets to peoples.
5. Derivatives plays an efficient role in improving the| financial market's efficiency.

Indian money market is a segment of the financial market in India where borrowing and lending of short form funds takes place. The maturity of money market instruments is from one day to ope year.

This market is regulated by both RBI (Reserve bank of India) and SEBI (The security and exchange Board of India).

Segments of the India money market
Unorganized money market is an old and ancient market, mainly it made of indigenous bankers & money lenders, etc.
Organised money market is that part which comes under the regulatory ambit of RBI & SEBI.
Instruments of organised money markets
Call money or notice money
Treasury bills
Commercial bill
Certificate of deposits
Commercial paper
Money market mutual funds
Repo and reverse repo market.

While determining length of distribution channel it is not true when the average lot size is large, it is better to have a longer channel.

Size - weight of product like coal food grains etc are directly distributed to the users involve heavy transportation costs, In order to minimize these costs a short and direct distribution channel is suitable.

Health care can be categorized as people processing services.
People processing services, as the name suggests, people processing services are directly targeted at individuals.

Here, the customers need to physically enter the service environment to avail the service that he desires.

Erg :- Banking services, passenger transportation, Hair cut services.