Perception : What are the three stages of perception?

Introduction to Perception

Perception is defined as a set of processes used by humans to make sense of all the stimuli that we face. It is basically an interpretation about the situation we are in and it can range from the smell of the garden you are in to the sight of beautiful birds flying up in the sky. It all depends on how we interpret all these different sensations. These senses are nothing but sensory impressions we get from the stimuli in the world around us. It is perception which enables us and gives us the ability to navigate the world. It helps make decisions about everything, from which T-shirt to wear, which restaurant to go to or how fast to run away from a tiger.

Suppose we close your eyes. The thoughts that run in your mind are nothing but accumulation of data. And in this data, majority of it is perception. The things you see, smell, hear and feel and you make sense out of it and this process of using your stimuli and getting an impression and making an interpretation is perception. It is an unconscious process which keeps happening as and when we come across a stimuli.

The Perception Process

This process of perception is such that it always begins with a stimulus which happens every second around us and then it ends with what we interpret from that stimulus. The very amazing thing about it is that it is an unconscious process which happens at a subtle level thousand times a day and we don’t even realize it. Now one may ask what an unconscious process is, so to make it clear an unconscious process is simply one that happens without awareness or intention.
For example, the brain need not be told that it is hungry, or it is cold outside.

What are the Stages involved in Perception process ?

Perception has three stages, namely selection, organization and interpretation. We will see each of the following in detail.

Selection

Selection comes into the picture when there are many things and we can’t take in so much as the capacity of the brain is less therefore, we have to select the stimuli. That was in layman words. Talking about perception, the world that we live in is filled with an infinite number of stimuli that we might attend to, but our brains do not have the resources to pay attention to everything. So, our first step is Selection which means selecting what we would like to attend to. This is usually unconscious, but sometimes intentional decision. The stimuli that we select , it may be smell, sight, voice , touch or any sense perception, that becomes an attended stimuli. This is selection, the very first process of what we call as perception.

Organization

The choice that we make sets off a series of reactions in our brain once we have chosen to attend to a stimulus in the environment. This might be unconscious but most of the time its conscious. The process of the nerves is called the neural process and it starts with the activation of our sensory receptors. These receptors are nothing but touch, taste, smell, sight, and hearing. After the activation, the receptor transforms the energy into an activity which after being tr transmitted to our brains, becomes a mental represented created by us. This representation is called as precept. At a single point in time, we can create multiple precepts.

Interpretation

The last stage is of interpretation which happens after we have attended to a stimulus. After the organization of the information that our brain has received we interpret it in a way that makes sense using our existing information about the world. And then we turn it to something we can analyze and understand. This happens unconsciously thousands of times a day.
Thus, to conclude in a simple and apt way we can say that perception is organizing, identifying and then interpreting the information we get from the various stimuli and then represent and understand the world around.

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Lockdown Tips : 7 Ways to Improve Eating Habits Overnight

Consume More Fruits And Vegetables

Vegetables and fruits are the most accessible and portable food and the best part is these are so important and have to be included in your diet. There are many reasons as to why it is important to include them in your diet. They are basically nutritional powerhouses into your daily diet. Let’s see a few reasons why it should be included every day in your food:

• The Problem Of Obesity Is Increasing Everyday
  We are getting obese and this is nothing but largely the result of being overfed and undernourished coupled with a sedentary lifestyle. The truth is the rise in obesity is at an all time high. What is happening is we are eating nutrient void, caloric-ally dense “sub-foods” which are loaded with fat, sugar, calories and chemicals and therefore we are gaining weight at rapid speed. To solve this and to lead a healthier life we need to consume fruits and vegetables daily. Therefore, so much weight age is given to it rather than high calorie foods.
• It Is Best To Protect Your Health
  Fruits and vegetables protect you from chronic diseases. It contains essential vitamins, minerals, and fiber that helps us be fit. These diseases and problems can be painful, debilitating and even fatal in some cases. It is seen that fruits and vegetables have the capability of protecting us against many problems. These problems may include heart disease, stroke, certain types of cancer, gastrointestinal issues, high blood pressure, eye disease and more.
• Eating Fruit And Vegetables Boosts Your Immune System.
  We must have studied that our immune system is like an internal army. If it is healthy and strong, it protects its border against invasion. A weakened immune system is an open invitation to virus and bacterial invasion. Eating more fruits and vegetables as part of a healthy diet is an therefore important key to remain fit always.
• Fruits And Vegetables Keep You Full For Longer.
  Health is important we all know but what also is a good thing about eating fruits and vegetables is that it keeps you full and you don’t feel hungry often. It gives you an inner satisfaction which is difficult to get otherwise.
• It Also Boosts Your Confidence.
  It is a fact that high calorie food but is damaging to our mental and emotional health as well. If you eat well, you fell well. We feel lazy and tired after eating this kind of food, but if we eat fruits and vegetables we naturally feel good and more powerful and active.
• Part Of A Treatment Plan.
  Fruits and vegetables are not only a healthy food option but also it helps in treatment against symptoms, illness, conditions and even disease. This is because of the benefits coming from the vital nutrients within certain fruits and vegetables. The best part is it comes without the harsh and painful side effects usually during medicines intake.
• It Gives You More Energy.
  A healthy diet along with exercise and a healthy lifestyle will give you lasting energy. This is a fact and with this whatever you do can be done in a better way. Therefore it is highly recommended to include fruits and vegetables in your diet. As we have seen there are many reasons as to why it is important to include it in your diet. They are basically nutritional powerhouses into your daily diet.

Conclusion
We must have studied that our immune system is like an internal army. If it is healthy and strong, it protects its border against invasion. A weakened immune system is an open invitation to virus and bacterial invasion. Eating more fruits and vegetables as part of a healthy diet is an therefore important key to remain fit always. A healthy diet along with exercise and a healthy lifestyle will give you lasting energy. Therefore it is highly recommended to include fruits and vegetables in your diet. They are basically nutritional powerhouses into your daily diet.
So, with this let’s make sure we eat fruits and vegetables and pave the way to a happier, healthier and fitter lifestyle.

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Climate Risk : Effects of Thermal Pollution

With the given demand for cooling in power generation and other industrial processes, the extent of thermal pollution worldwide is huge and wide spread. It is mostly observed in the more mechanised countries. The countries of Americas, Europe, Asia and Australia show this trend majorly which is in the heavy influence of thermal pollution. The adversity of thermal pollution is usually related either to chemical contamination or biological contamination. These combined causes of pollution can create rigorous stresses on aqua-biotic ecosystems.

Effects of Thermal Pollution

There are mainly two schools of thought regarding their perception about the effects of thermal pollution. According to the first school of thought, without these industries operating like they do then many basic parts of human life would be rendered obsolete. Waste water will not be maintained properly and basic products won’t be provided then.On the other hand, according to the other group, there are more negatives of this on the marine ecosystems and how badly it reprimands the positive environmental practices. But it is very clear that the negatives outweigh the benefits that industries provide us with.

• Biodiversity Loss – With even a small glitch or dent in the aquatic system related to biological activity well being, there can be a heavy loss faced on the biodiversity front. As far as the changing conditions of the environment prevail, it may lead to make certain species of organisms to shift or migrate from their base. Again there can be many species that shift due to warmer waters prevailing in the water bodies. It is not easy for all the species to adjust to the warmer waters and some might have a lot of difficulty due to this.

• Disruption of Reproductive System – There is a noticeable pause and disruption in the reproduction of marine wildlife with also the likelihood of prevalence of defects in new born having increased considerably. This happens mainly due to the increased temperature conditions as reproduction happens within certain range of temperature only. Several activities like nest building, spawning, hatching, reproduction and migration depend hugely on an optimum temperature. Excessively higher temperatures can wane the release of immature eggs or prevent the normal development of eggs.

• Decrease in Dissolved Oxygen Levels – It is observed that the concentration of dissolved oxygen (DO) decreases with increase in temperature. The water with higher temperature reduces the levels of (DO) in water. The warm water holds relatively lesser amount of oxygen in dissolved form than cold water. With this condition of decreased presence of dissolved oxygen can create suffocation for plants and animals like fishes, amphibians and copepods due to anaerobic conditions. Also with warmer waters, algae can thrive better on the surface of water. More the algae more will the anaerobic conditions prevail in the water.

• Mortality & Migration of Aquatic Organisms– Thermal pollution is a major reason for the mortality of aquatic animals. Fishes die after a certain temperature due to failure of respiratory and nervous system. Again there are cases of migration taking place due to higher temperatures to more suitable environment catering for their requirements of survival. We might lose those species which depends on those species as a food source.

• Abnormal Metabolism – Thermal pollution causes the metabolic rate to increase of organisms. This makes them consume more food as their enzyme levels are increased rather than the normal conditions. Temperature plays an important role in the proper functioning of physiology, metabolism and biochemical processes which controls factors like respiratory rates, digestion, excretion and development of organisms. This disrupts the balance within the food chain and the species composition.

• Increased Toxins – more the flow of higher temperature waters from the industrial discharges more is the increased concentration of toxins into the water. Huge increase in the toxins that are being regurgitated into the water bodies. These toxins contain chemicals or radiation which have a harsh impact on the local ecology and becomes prone to diseases. The toxicity with warmer waters gets even more poisonous. At a higher temperature of even 10 degree Celsius doubles the toxic effect of Potassium Cyanide and O-Xylene at 80 degree Celsius causes tremendous fish mortality.

• Ecological Impact – With a sudden thermal shock from thermal pollution has the capability of mass killing of fish, insects, plants or amphibians. Warmer waters are not favorable for all types of species which might be better for only few species. Little increase in temperature has higher activities but then goes on decreasing with further rise. Some species are very sensitive and they undergo drastic changes in metabolism and other adverse cellular biological effects.

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What is market positioning? Strategies, Significance

Once the list of target markets is made, the next step is to position the products in such a way that the target audience can connect with it Read More about - What is Market Segmentation? Basis, Types & Examples) . This can be done through a good marketing mix. Therefore, a decision has to be taken as to how to create an identity or image of the product in the mind of the customer. We know that every segment is different from the others. This thus, makes the expectations of different customers with different ideas come into picture and a proper understanding of this will help the marketers.

The process of positioning a product in a market includes:
1. Identifying the differential advantages that are unique to each segment
2. Finding the different positioning concept for each of these segments.

This process is nothing but positioning . In simple terms, we can say that positioning is one of the STP’S, a marketing strategy that ails to create an image for the brand.

Once we have targeted the various segments, now comes the role of positioning. We need to understand the very aspects of each segment and using the marketing mix, use techniques such that the brand image is created in the minds of the consumers of the various segments. It can be done with the attributes and special features of the product or the umbrella brand under which the product is introduced. Once the product is positioned based on the marketers plan and expectation, the base of the market is set and the product is ready to do well in the industry.

Talking about positioning, it is all about how the message about the product is delivered to the consumers . The message and its communication is essential because the potential consumers will decide whether to buy or not. The message has to be communicated aptly which will include everything about the product as in where you sell your product, how you make it, where you make it and your price. This all should be done without your using any overt advertising, public relations or promotions.

Considerations and divisions in positioning strategy:

Specific Demographic:

You may not appeal to any group if you try to be everything to everyone.
For example, the deodorant called Carolina Herrera markets itself only for women. It might lose sales in the men part, but the market share is increased as by getting more women to buy this deodorant than other brands. Therefore, to build that trust you need to target a specific demography.

Low-Price Strategy:

Companies can never increase their market share if they target the elite classes through their premium products. They should have a strategy called as low price strategy which will ensure all the consumers can afford it and it gains the favor of price conscious consumers. For example in India, companies know that the Indian customers are very price sensitive, so when they market in India, they make sure the price is affordable. This strategy can gain favor from all the customers in the area and hence increase the share.

High-Price Strategy:

Some companies price their products higher than their competition, and this is because to want to create a perceived value. There is a common perception that high price means high quality. So, to create the sense of affluence, status and good quality, companies increase the prices of their products. They are called as premium goods. For example, Apple and Iphone.

Distribution:

The place where you sell your goods, speaks a lot about its quality. For example: Tennis and golf equipment manufacturers position certain models in a way that it seems that the quality is higher compared to other brands in their line . they sell it only in professional shops or speciality stores. Now the public usually believe these are the top-of-the-line models because these rackets and clubs may not be available at Walmart or Target. Hence they desire for more of these products.

Affinity:

You can position your company to play on their loyalty to their group if you have a customer base with a common, personal denominator. For examples – there are marketers who advertise their products as made locally or in the United States; Christian-owned businesses; alignment with a charity; or sponsorship of a school sports program.
Positioning is all about getting the product connected to the target market in a way that the product was conceived as or the marketing strategy. It is the step before the final delivery, but the ultimate step in terms of creating a reputation or brand that will either attract or repel customers in their own ways.

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What is insurance? What are the elements of a contract of insurance?

In modern times every exchange is based on an agreement that is enforceable by law and hence is a contract. There are many types of contracts that people enter into. It may be a service contract with an employer or a lease rental contract with a landlord or a business contract with a seller/buyer. And like all these, insurance is also a legally valid contract.

What is Insurance

Simply put, insurance is a contract in which an insurance company agrees to pay to the policyholder a predetermined amount or the extent of the loss (which ever less) that the policyholder has incurred because of the happening of an untoward incident(s), that were agreed to be compensated for in terms of money, all in exchange of insurance premium that the policyholder should pay to the insurance company for the contract to begin. The total value of coverage provided by the insurance company to the policyholder is called total sum insured. Read more : Beginner’s Guide to Insurance

Features of an insurance contract

1. Utmost good faith:
   Insurance contracts have a peculiar feature of UTMOST GOOD FAITH because here the insurance company issues a policy in the name of the proposer (policy holder) by believing that all the details provided by the policyholder are completely true and provided in good faith and in utmost gold faith because the details are best known only to the proposer. The same is true vice versa also that the insurance company is expected to issue the policy by providing all the relevant policy details as understandable by the policy holder.
2. Indemnification:
   The insurance company agrees to compensate or indemnify the policy holder, a loss that can be quantified in terms of money and compensate him in such a way that it puts the insured back in the position as if the accident had not happened. An insured does not stand to make a profit from an insurance contact.
3. Insurance interest:
   The person taking the policy should have an interest in the well being of the person for whom or property for which he is taking the policy. This is called insurable interest. The policy buyer may acquire interest by common law of ownership or by a statute. Eg: Life insurance in the name of self or spouse or children; insurance for the property or business owned; insurance taken for one's employees.
4. Consideration:
   A prerequisite for a contract is exchange of something in return for something. So the insurer agrees to compensate the insured in return for a small sum of money called premium which may be paid at the onset of the policy contract or in installments during policy period depending on the country's insurance regulations.
5. Contribution:
   If an insurer holds policies from multiple insurance companies for the same subject matter, the insurance companies are required to share the compensation to be paid to the insured in the same proportion as the sum insureds the different policies. This is true in case of all policies except of life insurance and health insurance policies where each insurer is required to pay the whole sum insured to the policyholder.
6. Subrogation:
   This feature of an insurance contract means that in case the insurance company pays the insurance amount to a policyholder because of the negligence caused by a third-party, the company is entitled to be of compensation by the third party.

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4 Cute Ways To Pacify Your Angry Spouse

How to Deal With an Angry Partner

Is it really safe to ask your partner to take a chill pill when he or she is really angry? I guess it is best not to say something that can flare up an argument. If your partner is angry because of you, then be even more cautious. Defending yourself will be like adding fuel to the fire. We need to understand that nobody is upset by choice there is always a reason. So, as a first step to calm your partner down, you should let your partner vent out their emotions. Here are some ideas that will definitely help.

1. Humor- Yes manners are good but humor is a must in a relationship. We all are attracted to people who have a good sense of humor. Humor takes the centre stage when it comes to sustaining a relationship or calming down your partner. When he/she gets angry turn on their favorite music and ask them to dance or even better, dance on the same notes in a weird funnier way! That should definitely improve their mood. I will tell you something funny: just repeat the words your spouse says, keep on repeating them until he/she become quite and that will force them to laugh.

2. Speak the truth- When they shout at you, don’t shout back or reply angrily. Instead confess that you get scared and feel hurt when treated like that. They will lovingly disengage themselves from their angry self.

3. Know your partners melting point- Aha this is very crucial to note down folks. There are times when you will hate your significant or better half for the kind of behavior they present. But trust me behind their red facade is a golden heart that you once traded with yours. So research a little about your dear one, what, when, how does your sweetheart get upset or irritated and then try to figure out ways to handle such situations if they crop up! To melt away the anger be genuinely sorry if you have made a blunder. Accept the punishment and from the next time make sure that degree Celsius is not shot up!

4. Don’t ever run away- Okay many have the habit of abstaining from the main point and bringing in other ‘not so important’ point and fighting over it. Handle it well and please don’t refrain from the point. Communication is a must. This will not make your partner feel frustrated or resentful otherwise they will think that you simply don’t care.

Anger is like fire, it will burn everything down. So be calm, be patient and you will notice the anger cascading. Don’t forget you can always take help from near and dear ones if the situation is not manageable all by yourself. Many people gather the wrong notion of not seeking help as they feel ashamed (they think people will think that they are adults but still can’t handle such situations). But that is incorrect. In that way they are digging their own graves. Life will invite numerous twists and turns or ups and downs but to maintain the balance in a relationship you have to maintain inner peace yourself. Understand that your spouse has a lot of pressure like you; at the end of the day we all are human beings. If both are of the same temperament then you guys will only repeal and worsen the condition, the strength of our relationship. So keep calm, back-off for a while, try to judge the gravity of the situation and finally act.

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What are the main elements of a healthy lifestyle? 7 essentials

“Health is wealth” and as every New Year brings in a sense of positivity and unending energy with plans to conquer the world let's get started with the basics and discuss 7 essentials to a healthy lifestyle.

1. Set a routine:
   Nature works on a pre-set clock and so do our bodies. Setting a routine means making and sticking to wake up and sleep time schedules.It’s not easy to be sincere towards it but only when we do it will we realize the benefits. Waking up and sleeping at a set time aid in better metabolic functions essentially keeping us healthy and mentally awake from the moment of awareness in the morning till bed time. It reduces stress in us unlike when we rush in the morning to reach office in time or drop off kids to school before the hour bell goes. Ultimately it keeps us at peace as we get going without much of a hurdle.
   
   
2. Know your morning mantra
   Everyone has a special thing he/she would like waking up to. That special 1st hour can be spending with family and pets or engaging in gardening, a nature walk, or simply sipping a mug of coffee. One must know one's pick and try to inculcate that in one’s everyday routine. What we do in the first hour of our waking matters a lot. What that first hour must give you is a happy feeling at the end of the day however hard the day at work has been.
   
   
3. Eat right
   We are what we eat! Although not everyone's body act in a similar way, it is up to us to make wise eating decisions at least 5 out of 7 days a week. Sumptuous and energy providing breakfast followed by a balanced lunch or a series of small meals should be the plan before ending the day with a light yet satisfying dinner. You may choose any cuisine you prefer because all have good balanced dishes but ensure that you are consuming a balanced, well planned and healthy diet throughout the week to keep you physically healthy and mentally active and aesthetically vibrant.
   
   
4. Drink enough water
   Water is the second most essential ingredient for survival water oxygenated air. And not drinking enough of it is not going to get us anywhere even if we lived ideal lifestyles. Water keeps the blood sugar levels right, reduces stress, helps eliminate toxins, keeps the skin supple and oil-free, reduces waste build up in the gut, and if drunk sufficiently also helps us lose weight beyond our imagination. It keeps us from overeating and suffering from mood swings and by supplying more oxygen to the brain it improves our productivity at whatever we are doing. Isn’t it an elixir enough?
   
   
5. Stay mobile
   Staying active has become more of a choice than necessity with increasing comforts making their way into our lives. Choosing stairs instead of the lifts and elevators, lifting our stuffs than seeking help, planning to walk to a nearby place than renting a cab are the excuses we need to make to stay active. And best of all choose to deliver a message to your colleague on the same floor in person than sending out an intranet message. Flexing muscles every half to one hour keeps the blood from thickening. Those who can should certainly include a 30 minute walk/ cycling/ gymming/ dancing/sporting routine in their lives because who doesn’t want better health and physique!
   
   
6. Short recesses
   Taking quick breaks helps us get back to our activity with a fresh mind and energy. Ending with the right people during such recesses goes a long way in staying positive, connected and successful.
   
   
7. Plan an activity for every day
   We all have or at least want to have a life beyond a 9 to 6 work-day. Although many of us may be not be able to achieve a lot in this segment we can at least set small, tasks and targets for ourselves to make each day merrier by being able to accomplish them and at the same time doing what we love to or we ought to. Keep your expectations on the ground and plan your everyday in a different way so that you stay away from monotony and feeling the burden of daily mundane chores. Personally, I suggest set every alternate day for chores and self pampering... keeps me motivated enough to go through the grind.
   
   

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What are Interest Rate Swaps(IRS) | What happens in Interest Rate Swap ?

In the world of finance “Interest Rate Swap” is a financial technique used by financial institutions around the world. But we don’t realise that it is applicable to a common borrower like you and me. IRS is considered to be a complex financial arrangement but ironically it is barely a 5-10 minute simple read that can help you not only understand the process of an IRS but also use this in your next borrowing negotiation, thus helping you save a considerable amount of interest on your debt. Let's see how.

What is Interest Rate Swap with example? How does an interest rate swap work?

Let's break down the term first. ‘Interest Rate’ indicates that it talks about a rate of interest on a loan payable by any borrower (debtor) to the lender. ‘Swap' simply means to take something by giving something. So, IRS means that you as a borrower and payer of interest are going to come into an arrangement with another borrower whereby you will take up a fixed rate of interest payment on the debt in place of a floating rate of interest or vice versa. Now, this decision of yours will be completely based on your expectations of a rise or fall in interest rates in your country or with your bank or your lender. And an IRS can take place only if there are two borrowers who have different expectations about the future interest rates.

Interest Rate Swaps Example

So, suppose Mr. A has a loan of $100,000 from his bank with a fixed rate of interest on the debt @ 8%. And also imagine that Mr. B, another borrower, has borrowed $100,000 from his bank at a floating rate of interest @ LIBOR+2%. Suppose LIBOR is 5% now.So Mr. A is paying $8000 p.a. and Mr. B is paying $7000 p.a.

*LIBOR is a benchmark floating rate of interest
*(Floating rate of interest is a changing interest rate on your loan as and when your lender bank changes the rates due to economic changes)
*Mr. A & Mr. B need not necessarily be borrowers of same amounts but we have considered $100,000 for easy calculations.

From, fixed rate of interest and floating rate of interest, you must have learnt that at the time of taking a loan Mr. A has opted for a fixed interest rate on his loan because he assumes that the interest rates in the future are going to rise, while Mr. B expects a fall in the future interest rate and so opts for a floating interest rate.

Going forward, they both are unhappy with their interest rates i.e. Mr. A thinks that he was wrong about his assumption and Mr. B finds it a burden to pay an uncertainly changing interest rate as and when the bank changes its rate and so they decide to enter into an IRS agreement whereby Mr. A will be paying interest at a floating rate and Mr. B at a fixed rate after the Swap. So with this change Mr. A will be paying $7000 p.a. as interest when the interest rates are unchanged and Mr. B will be paying $8000 p.a. at all times.

If the LIBOR rises from 5% to 7% Mr. A will end up paying $9000 p.a and Mr. B interest remains same. Again if the LIBOR falls from 5% to 4% Mr. A ends up paying $6000 p.a. while Mr. B pays the same $8000 p.a. as he has shifted to a fixed interest rate regime after the Swap.

Thus, an IRS is a mutually benefiting agreement between 2 parties who are borrowers in some form and have an opposite expectation about the future interest rates or have an opposite risk taking ability.

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Difference between Fixed Rate of Interest & Floating Rate of interest?

Any borrower of money, either an individual or an institution is expected to pay an extra amount over and above the actual amount of loan to the lender at the time of repayment. The extra amount paid is called interest and the actual amount of loan is called principle. Interest to be paid by the borrower to the lender is calculated as a percentage of the principle. Hence, the term Interest Rate.

There are broadly two systems of interest rates charged by banks and financial institutions or any lender following an formal system of lending: The fixed rate of interest and floating rate of interest.

Here is a simple explanation for the two!

Fixed Rate of Interest

When a lender- a bank/ financial institution or an individual lends at a predefined and unchangeable rate of interest to be paid by the borrower on the principle (amount of loan) for the duration of loan irrespective of what happens to the interest rates in the country in the future, the rate of interest is said to be fixed.

Fixed rate of interest is a better choice for a lender if he expects a fall in the interest rates in the future. So, he would profit from receiving a higher rate of interest even when the general interest rate levels are down in the future. On the contrary, this would be beneficial for a borrower if he expects the rates to rise in the future. In this case, he would enjoy paying a lower fixed interest rate irrespective of the higher rates in the future.

Floating Rate of interest

Let's say that at the time of lending, the lender specifies the interest rate (to be paid by you) on your loan to be LIBOR+2%. This means that your interest rate is not fixed but rather variable. It may rise in the future if the LIBOR rises and fall if the LIBOR falls thus requiring you to pay more and less in the cases respectively. Thus, under this rate of interest the rates are completely dependent on the base – LIBOR.
Going by the same logic as above for a lender, floating rate of interest is ideal if he foresees a rise in the interest rates in the future but for a borrower it is rational to choose a floating rate of interest if he expects a fall in the interest rates in the future.

Which is better, a fixed or variable rate loan?

Fixed vs Floating Interest Rate – Which Suits you The Best

From the above you may realise that you should opt for a fixed rate of interest for your loan if you are expecting the future rate of interest in your country to be higher than they are now and choose a floating rate of interest if you are expecting a fall in the interest rates in the future. The exact converse will be true in case of a lender.

You would know this if you're reading the newspapers or financial tabloids that discuss about the future plans of the Central Bank of your country or your lending bank/ institution. If there are signs that the Central Bank or your lending bank is likely to rise the rates of interest, you as a borrower should know that a fixed rate of interest is what you must choose today.

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How are Open Market Operations (OMO) and bond yields related?

OMO or open market operation is a quantitative financial tool by which a country’s Central Bank (The Federal Reserve System of the U.S.A., the European Union of the U.K., the Reserve Bank of India, the People’s Bank of China and all others) regulates the supply of money in its economy. A Central Bank’s main responsibility is to keep the inflation in check by managing the money supply, ensure that enough foreign reserves are maintained and the value of the currency is stable and not volatile in the constantly changing global relations and scenarios.

What is an OMO or Open Operation?

OMO means that a country’s Central Bank (central bank) involves in either purchase or sale of the government securities from and tothe banks operating in that country. The central bank performs this on behalf of the Government of that country. OMO takes place constantly between the banks and the central bank to keep the amount of money supply in the economy in check.

When does the central bank perform an OMO sale ad when does it perform an OMO purchase?

OMO sale-
If the central bank witnesses a rise in the inflation which means that more money is chasing fewer goods thus implying that there is money in the economy, the central bank announces an OMO sale i.e. the sale of securities in return for money from the banks. By this, the central bank has sucked out money from the banks which are the vehicles of money supply. Now, with quantity of money having become less, lending becomes difficult and so the lending rates rise. With this rise, deposit rates also rise in the banks.

OMO purchase-
If the economy is facing a shortage of money and the rate of inflation is below the required level it means that there is a difficulty in conducting day-to-day businesses in that country. So, the central bank steps in and decides an OMO purchase whereby it purchases the securities from the banks and gives them money. With this, the banks become money rich. Lending gets cheaper and easier. As a natural consequence deposit rates fall because the people are interested in borrowing at cheaper rates from banks and investing in business and infrastructure projects or simply any money churning activity.

So, how are bond prices related to all this? How does OMO affects bond yields?

Now, with higher deposit rates being offered by the banks after an OMO sale, the bond investors feel that the coupons they would receive from buying an older bond would be lesser attractive than the new deposit rates and as a result they are willing to pay lesser to buy the old bonds.Hence the price of the old bonds begins to fall with an increase in interest rates in the economy. Therefore interest rates and bond prices are inversely proportional. The exact reverse would happen in the case of an OMO purchase. Let’s understand this with a $100 investment comparison through this table.

How are interest rates related to open market operations? 

It can be seen that after an OMO sale the bank offers a better return than the bond investment. And so the people agree to buy the bonds for lesser as they are getting lesser returns. Thus, an OMO sale brings the bond prices down and an OMO purchase pushes the bond prices up.

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10 Most Addictive Foods in the world

“Laughter is said to be the brightest where food is said to be the best.” Be it a choosy foodie who craves for his favourite foodstuff or the regular consumer , all of them have their personal choice of dishes that make their taste buds go mouth watering for their favourite dishes. An addict has cravings that get out of control. It could affect Physical and emotional happiness in the long run. An addict builds an “Illusion” of a state where one gets the pleasurable idea of eating even more turning out to be habitual. It is good to be in limits and restrict temptations as the end result might turn out to be bad.

My personal guide to top 10 food cravings that is healthy at the same time delightful covering a wide range from the morning breakfast to the evening meal.

1.  Oatmeal

It is a healthy breakfast food that nourishes one enabling them to work for hours together. It has low calories and is a high fiber diet that also stimulates body metabolism and digestion. One does not feel hungry for hours together as the body digests and absorbs it slowly. It also helps in reducing chances of health issues such as diabetes and high cholesterol. Thus it is the best suited dish for breakfast. Oatmeal can be classified to several types such as

• Steel cut Oatmeal
• Old Fashioned Oatmeal
• Quick Cooking and Instant Oats.

2.  Chocolate

From a little toddler to a 90 year old. Chocolate is something one cannot resist temptation for. Dark Chocolate is said to be good for the heart compared to Milk Chocolate. One needs to thoroughly brush their teeth after having chocolate as the germ content builds up overnight. The best way to add a healthy twist to the meal with chocolate can be by making healthy chocolate dips or some dishes like

• Black Forest Trifle-This is a new twist on the traditional multi-layered English dessert. It contains 16 ounces of no-sugar-added pitted cherries (frozen is fine) and it's low in calories, cholesterol, fat, and saturated fat.
• Chocolate Tofu Mousse- made of soy milk and silken tofu, which reduces the fat content without sacrificing flavor.

3. Tasty choice of Salads

• Fresh and tasty Macaroni Salad
• Raw butternut squash and Kale salad
• Carrot Avocado and Orange Salad
• Lime Ginger and Parsnip particles made into a salad.
• Carrot Parsley Salad

4. Choice Of Nuts

• Maple Spiced Mixed nuts
• Cinnamon Maple Mixed Nut Butter
• Protein Breakfast Bars
• Raspberry Coconut Paleo with walnuts

5. Burger

• Cauliflower Veggie Burger
• Grilled Portobello Mushroom Burger
• Grilled Mango Peach Salsa Burger
• Green Chile salsa burger

6. Cakes

Cakes can be baked with a twist with a great choice of sea food or healthy vegetables. Some of the healthy varieties include

• Tuna Fish Cakes
• Carrot Cake
• Oyster Cake
• Banana Cake

7. Chips

There are some healthy and much tastier varieties of chips other than Potato chips. Some of them are

• Corn Chips
• Banana Chips
• Tapioca Chips
• Carrot Chips
• Butternut Squash Fries

It is good to consume them baked rather than frying them in oil.

8. Noodles

Noodles are something that all of us crave for here are some healthy options namely

• Vegan Kale Pesto with Zucchini Noodles
• Basil and Mint Squash Noodles
• Vegan Creamy Ginger Coconut Kale Zucchini Spaghetti
• Carrot Noodles with lime and spaghetti

9. Donuts

It is something that the American sheriff loves munching onto in the middle of the night. Some healthy choices include

• Gluten free cake donut powdered with Cinnamon or Sugar
• Cinnamon Sugar Donut Holes
• Raspberry and Coconut glazed Donuts
• Dark Chocolate Red Wine Donuts

10. Ice Cream

There is always room for ice cream. Without dessert a meal can never be complete. Healthy variants of ice creams are as follows

• Chocolate Coconut milk Ice cream
• 5 minute creamy mango ice cream
• Raw chocolate Banana ice cream with strawberry toppings
• Peach Almond Ice cream.

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Thanksgiving Day | Origin, History, Facts, Tradition,Controversy

Thanksgiving is hands down one of the most recognisable holidays in the world today. Many of us would think back fondly about that Friends episode on thanksgiving where everyone recollects their memories or Woody Allen’s magnificent film, “Hannah and her sisters” which revolves around thanksgiving.

So regardless of how, most of us are familiar with thanksgiving. But maybe this year you have been invited as a guest to a dinner and would like to dig a little deeper to understand the tradition better or you are just plain curious and want to know all there is about this festival. Well, fret not because we have you covered.

When did Thanksgiving originate?

So at some point you might have heard about the pilgrims but who were they? In 1620, a ship carrying around a 100 passengers left Plymouth, England for America in the hopes of a new life, a life free of religious persecution that they were facing back in England. After a treacherous journey they set up a village called, well, Plymouth in Massachusetts. The pilgrims found it tough to adapt to the new environments and many contracted diseases and died. This was when an Indian by the name of Squanto helped them. Squanto had been kidnapped by a British captain, sold to slavery in London and had then returned to America on board a ship on expedition. He taught them various skills and this helped them to successfully get a good harvest the next year. To commemorate this happy occasion, the Governor of the village, William Bradford invited the chiefs and other prominent Indians to a feast to thank them, although the term thanksgiving might not have been used.

And hence was born the tradition called Thanksgiving.

It is worth noting that there exist other stories on the origins and for the most part, scholars continue to argue about who first organized a Thanksgiving dinner but rest assured, as of now, the most widely accepted story continues to be this.

What is Thanksgiving in the USA? Thanksgiving in present form

In 1789, President George Washington issued a proclamation on the events of conclusion of the war and the ratification of the constitution to celebrate Thanksgiving Day. He asked his fellow Americans to express gratitude for the happy state of affairs.

Through much of the 19th century there was no uniform, Thanksgiving Day and the states that did celebrate it did so on various days. The seeds for having a uniform day for Thanksgiving were first sown by an author, Sarah Josepha Hale who campaigned relentlessly for 36 years for it to happen. Abraham Lincoln finally proclaimed that Thanksgiving be celebrated on the last Thursday of November and except for an infamous two years when it was pre-poned a week by FDR in the hopes of spurring sales but this was met with much opposition and so the dates were reverted back in 1941.

The dark history of Thanksgiving. Why many Americans don't celebrate it?

So was the celebration of Thanksgiving and the general climate at the time always genial and merry? Well, perhaps not. Take the events leading upto Thanksgiving 1637. The body of a white man was discovered and in retaliation the people burned villages of the Pequot nation down. It is estimated that 700 men, women and children died in this massacre. Merely days after this, the governor said, ”A day of thanksgiving. Thanking God that they had eliminated over 700 men, women and children.” Given this incident it isn’t tough to imagine why quite a few refuse to celebrate Thanksgiving.

So there you have it, a short primer on Thanksgiving. But where does that leave you and me? Should we go ahead and celebrate the festival, in a celebration of man’s desire to exist and succeed which belongs to the core of the American dream? Or are we to look at the many fault lines, lines which haven’t been filled in USA’s short history as a union.

If you were to ask me, I would say one needs to have a unbiased understanding of history. After all, as the old saying goes, “Ones who do not learn from history are bound to repeat it”. I also think that assembling as a group for a warm and jovial time isn’t a crime. So if you are indeed going to celebrate Thanksgiving, whilst saying a prayer to the pilgrims also say a prayer to all those who had to tragically give up their lives, for no apparent reason but because of the color of their skin.

HAPPY THANKSGIVINGs!

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Top 9 Dos and Don'ts of Dieting : Weight Loss Success

Once it comes to dieting, lose the fads. The single most effective way to lose weight and maintain good health is adoption of lasting lifestyle changes. A healthy diet is a way of life that puts a halt to processed, packaged foods soaking with salt, sodium, and preservatives. It emphasises on natural, nutrient-packed foods that let your body have a good rate of metabolism as it’s believed to. Revolutionise how you gaze and experience with these eating tips by following these steps:

1. Consume four to six little meals a day. Lighter, more common meals will maintain your blood sugar levels and will amplify your metabolism. And, since the meals make the stomach feel full throughout the day, you will not feel tempted to go pantry-raiding.
2. Don’t skip breakfast. Skipping you breakfast should never be an option. It ensures a good rate of metabolism throughout day. What’s more, if you miss it, you’re likely to find yourself having generously proportioned quantities of food at later meals.
3. Drink water- Drink at least four to six glasses of water each day to keep the body hydrated. Water also helps the tummy feel full.To feel refreshed, go for lemon water.
4. Don’t sip too much alcohol. Whether it’s a neat drink or a cocktail, alcohol offers only calories and no dietary value. Save the alcohol cheat days for occasions.
5. Do keep healthy munchies within reach. The idea of a healthy diet is not to starve but to eat enough and keep yourself up and about for your daily activities. Snacks will definitely up your spirits for it.
6. Don’t stop yourself from consuming sugar. Excess sugar is correlated to obesity, high blood pressure, and tenderness. Packaged and processed eatables often weigh down the body with unwanted sugar. Even food stuff that sounds healthy, like store-bought applesauce, often contains too much sugar. Instead, satisfy your sweet tooth with simple sugars, like those found in a whole apple.
7. Consume veggies: Vegetables transport nutrients, antioxidants, and fibre. They’re simple, hale and hearty recipes that are just what the doctor prescribes for busy nights.
8. Avoid super-sized portions. Even if you’re eating a sparkling diet, try to have smaller portions, even if you take the portion multiple times. A good way to trick yourself into having less or just adequate is to take a smaller plate/ utensil to give the impression of having a full plate.
9. Don’t start the week without a meal plan. Can’t respond to the question, “what’s for feast tonight?” Be a plotter. Make your mind up on a week’s significance of fresh eating recipes ahead of time so that you don’t get stuck feeding the family a boxed meal containing processed or pulverized who-knows-what.

Benefits of Eating Healthy

Eating healthy isn’t all the time trouble-free, but committing to a well-designed diet that suits your daily needs can be one of the smartest decisions you ever make. How? Not only can eating well make you look and feel healthier, it can also save your money on health costs.
But even if you propose to “consume healthy,” the way to do it can be demanding and even frustrating. “Subsequent a healthy diet includes choosing ample of slant meats, eggs, vegetables, fruit, whole grain and dairy products,” Eating well also means ruling out or hardly ever consuming foods that are lofty in added sugar, drenched fat and sodium. That includes most fast food, full-calorie sodas, processed refreshments like French fries and nuts, and whatever thing with more milligrams of sodium than there is calories in an allocation.

• Increases productivity
• Save money on life insurance
• Enhances mood
• Regulates weight
• Live longer
• Stay happier
• Filled with positivity
• More confident and focused

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Vitamin D : Benefits of Vitamin D, Sources, Uses, Effects

Sunshine nutrition-consider diet vitamin D when you’re catching up on summer rays. It’s from time to time called the “sunshine diet” as it’s reaches your pores and skin in the form of sunlight. Vitamin D is a fat-soluble vitamin in a family of compounds that consists of vitamins D-1, D-2, and D-3.

Uses and advantages of Vitamin D

Vitamin D has numerous critical functions. Perhaps the most crucial are regulating the absorption of calcium and phosphorous, and facilitating ordinary immune machine function. Getting a sufficient amount of vitamin D is vital for everyday increase and improvement of bones and enamel, in addition to stepped forward resistance against certain diseases.
If your body doesn’t get enough vitamin D, you’re prone to growing bone abnormalities which include smooth bones (osteomalacia) or fragile bones (osteoporosis).

Vitamin D fights ailment

Similar to its primary functions, research indicates that vitamin D may also play a role in:

• Reducing threat of more than one sclerosis, consistent with a 2006 study published in the magazine of the American medical association
• Reducing the risk of developing heart disease
• Reducing the likelihood of catching the flu(2010 research posted inside the American journal of clinical nutrition)

Vitamin D fights depression

Studies have shown that vitamin D might play an critical role in regulating mood and reducing the risk of depression. In one study, scientists found that human beings who were regular with intake of vitamin D through dietary supplements observed an improvement of their symptoms. In another study of people with fibromyalgia, researchers found vitamin D deficiency was found more in those who were additionally experiencing anxiety and melancholy.

Vitamin D boosts weight loss.

Consider adding vitamin D supplements on your weight loss plan in case you have found out through medical tests that you have vitamin D deficiency.
Ina study, individuals who took a vitamin D supplement did not lose a lot of weight, however have been capable of reducing the risk of coronary heart disease.
In another study, people taking calcium and vitamin D supplement have been capable of losing extra weight than subjects taking a placebo supplement.

Component 6 of eleven: Daylight

How do you get it?
Your body absorbs vitamin D when exposed to sunlight. All you need is 10 minutes an early noon/ morning, (sunscreen applied) solar exposure, especially if you have bigger pores and skin.
Apart from getting vitamin D via daylight, you could additionally get it via certain foods and supplements to make certain ok levels of the nutrition on your blood.

Beware of vitamin“D-ficiency”

Many life-style and environmental elements can have an effect on your ability to get enough amounts of diet D through the solar on our own. These factors consist of:

• pollutants
• use of sunscreen
• spending greater time indoors
• residing in massive cities wherein homes block daylight
• having darker pores and skin

these elements make a contribution to nutrition D deficiency in increasingly humans. That’s why it’s important to get some of your diet D from resources besides sunlight.

The signs of a nutrition vitamin D deficiency in adults consist of:

• visible tiredness, aches and pains, and a sense of not feeling up and about
• intense bone or muscle pain or weak point which could cause issue hiking stairs or getting up from the floor or a low chair, or motive the man or woman to walk with a waddling gait
• strain fractures, particularly within the legs, pelvis, and hips Doctors can diagnose a vitamin D deficiency with a routine blood test. If you have a deficiency, your health practitioner may additionally order X-rays to check the electricity of your bones.

Food sources of vitamin D

Very few foods contain vitamin D. due to this, some foods are fortified with it, which means vitamin D has been added. meals that comprise vitamin D consist of:

• salmon
• sardines
• egg yolk
• shrimp
• milk (fortified)
• cereal (fortified)
• yogurt (fortified)
• orange juice (fortified)

it can be hard to get enough vitamin D each day through sun exposure and food naturally, so taking vitamin D dietary supplements can assist one in getting the prop

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Is Fruit only diet REALLY helping you lose weight?

Can Too Much Fruit Stall Weight Loss?

Fructose, the sugar in organic product, can prompt weight pick up in the event that you eat too much fruit. Fructose, the normal sugar found in foods grown from the ground, has raised numerous an eyebrow due to its impact on weight. Be that as it may, all types fructose do not have the same type of effect on weight. There's a kind of fructose that you get in the entire organic product, and after that there's one that is defined into a sweetener for sustenance items like pop, which has been connected to well being issues, including solid cholesterol levels and decreased insulin levels.

Impact On The Liver

The organic product sugar would be beneficial for the body,fructose has certain negative impacts when consumed in unreasonable amounts. The liver gets over-burdened and begins processing excessive triglycerides, which can lead to coronary illness. Notwithstanding this, a portion of the triglycerides can stay in your liver, diminishing insulin affect-ability and adding to the risk of diabetes.

Organic products are nature's great blessing to the humanity; surely, they are life-changing meds full of vitamins, minerals, anti oxidants and numerous supplements (Plant determined micro-nutrients). They are an outright devour to our sight in view of their shading and flavor as well as for their one of a kind sustenance profile that help human body free from maladies and keep it solid!

Advantages:

Natural products are low in calories and fat and are a wellspring of straightforward sugars, fiber, and vitamins, which are key for improving our well being.

Natural products give a lot of dis-solvable dietary fiber, which cuts down cholesterol and fats from the body and to help in smooth motions. Natural products made of numerous anti oxidants, for example, poly-phenolic flavonoids, vitamin-C etc. These mixes, firstly, help human body shielded from oxidant anxiety, ailments, and malignancies, and furthermore; help the body create ability to battle against these infirmities by boosting our invulnerability level. Numerous organic products, when contrasted with vegetables and oats, have high hostile to oxidant values, which is measured as far as their "Oxygen Radical Absorbent Capacity" or (ORAC).

Anthocyanins are a flavonoid class of poly-phenolic mixes found in some "blue-organic products" like violet grapes, mulberries, acai berry, chokeberry, blueberries, blackberries, and in numerous vegetables which are slightly blue or dark purple colors. Consuming fruits rich in blue offers numerous medical advantages. These mixes have intense hostile to oxidant properties that expel free radicals from the body, and therefore offer security against ageing, diseases, and so on.

Some Healthy natural products that slow down weight reduction

• Low calorie Strawberry Parfait for the individuals who have a sweet tooth , improving Breakfast taste even like a pastry
• Blueberry Banana Smoothie
• Apple and Veggie Sausage Breakfast Sandwich
• Creamy wheat Berry Hot Cereal.

The Berry Factor

Blueberries, strawberries, and acai berries may put the brakes on age-related subjective decay by protecting the mind's common "servant" component, which accompanies age. Studies demonstrate that blueberries support "fixation and memory" for up to five hours in light of the fact that "the cell reinforcements in blueberries fortify the stream of blood and oxygen to the cerebrum and muscles – and keep the mind and body new and invigorated.

Dry organic products are rich in supplements, for example, vitamins and minerals. Utilisation of some dry natural products day by day improves the general bio-availability of supplements. Try raisins (dried grapes), goji berry, apricots, dates, figs, tamarind etc. which are undoubtedly great in iron, calcium, zinc, selenium and manganese. Likewise, blending dry natural products with some crisp organic products would help you get vitamin C which thus encourages complete assimilation of iron inside the stomach.

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Market Potential of a Product: Definition & Analysis Example

What is market potential?

Market potential is defined as the total of the market size for a product at a given period of time. It is always calculated at a specific time. The measurement of market potential is usually done by two ways-either by sales value or by sales volume.

Example of market potential

The market potential for five motor bikes may be Rs 50,000,000 in a year. On the other hand, the market potential for cars may be 500,000 units each year. Now, this is a measure of sales volume rather than sales value.

We should know that the market potential is just a snapshot in time. It's a fluid number that changes. It is dynamic which changes with the economic environment. It represents the upper limits of the market for a product. For example, the demand for products that are typically financed, like cars and houses will be affected by rising and falling interest rates.

Market Potential Analysis

Marketing process will be successful if we find out the market potential of a product and therefore it requires marketing research. First of all, analysis of your potential customer base is important. Then analyze your competition because they are who you compete with and very importantly analyzing the current environmental conditions. It is because current environmental conditions may affect market potential and it is therefore important.

How to determine Market potential for any product or service?

1)  Analyzing Potential Customer Base

Important information that is required will be:
•   The population size of your target market
•   their product preferences
•   their household income.
And hence we can come to know about the number of potential customers and whether they can actually afford the product. You need to determine the size and demographic characteristics of your potential consumers

We can analyze the data using either primary data or secondary data. Both are effective and are used. Primary data is the first hand information, and secondary data is the second hand information which is not directly obtained.

2) Analyzing Competition

If you are willing to bring out a new product in the market you have to analyze your competitors well. It is said that a marketer should know its future competitors to actually position himself in the market. You have to know the competitors’ strengths, weaknesses, threats and opportunities and for that SWOT analysis is important.

3) Analyzing the Current Environment

We all know that market potential is not a static concept. It is absolutely dynamic which changes with the general economic and political environment.

For example:
•   If interest rates go up, the demand for a particular product will go down and this will decrease the product's overall market potential.
•   A change in tax rates may also suppress spending less money is available on discretionary purchases, thereby reducing a product's overall market potential.
•   On the other hand, market potential can increase if wages increase, taxes are lowered or interest rates decline. Thus to conclude we can say that market potential is defined as the total of the market size for a product at a given period of time.

What is Actual Market?

Actual Market is a type of environment situated in the market which is characterized by heavy transaction volume and day to day transactions hold importance in it. It can be called as commodity market because commodities in actual market are delivered immediately.

The actual market is basically concerned with the buying and selling of commodities. Commodities are tangible goods that are needed by humans. It usually involves diverse types of products.

Commodities are goods which can be of three types. The first one being FMCG products also known as fast moving consumer goods. These goods are needed every now and then like salt, sugar, rice, Colgate etc. Then we have durable goods which are long lasting and their need arises once in a while, like TV, ac, fridge, sofa set.

And then lastly, we have speciality goods. These are expensive goods which when bought adds status and pride to our value. Like ancient articles, jewellery, paintings. These goods are bought with care and a lot of thought unlike FMCG which can be bought without a second thought.

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What is Dosanomics? Raghuram Rajan's Dosa Economics explained

Mr. Raghuram Rajan is an Indian Economist and a distinguished Professor at the University of Chicago. Mr. Rajan was the Chief Economist and Director at the IMF between 2003 and 2006, the Chief Economic Advisor of India in 2012 and the Governor of the Reserve Bank of India from 2013 to 2016. During his governorship he worked with a vision to bring down inflation rates, bring out large scale financial inclusion in the Indian masses, promote digitalization in the Indian Banking System and dig out bad loans that lay hidden in the Indian PSBs- a move that has opened the nation’s eyes that all is not well with the Banking system. Unlike many of his predecessors in India and peers around the world he is known for his bold and massively unpopular steps when it came to bringing India’s economy on track.

During one of his public speeches and press meetings he tried to explain his move to bring down inflation. He wanted to convey that a low interest rate with a low inflation rate is much better than a high interest rate with a high inflation rate. During his tenure the inflation rate had been controlled to 5% from 10% and as a result the bank term rates also fell from 10% to 8%. This left the conservative term deposit lovers disgruntled. So, to explain his move and to instill the basics of economics in the minds of the masses he used the simple example of a Masala dosa, thus the term Dosanomics.
Here’s his example:

Scenario 1

High inflation 10%

The saver knows that he can get more dosas if he just kept his money in a bank’s Term Deposit at 10% p.a. for one year. By the end of 1 year he gets Rs. 10,000 (100,000*10%) plus the original Rs. 100,000. So with Rs. 110,000 he can buy 2200 dosas. But here’s the catch! The economy is experiencing a 10% inflation rate. This means that the cost of a dosa has risen by 10% from Rs. 50 to Rs. 55. So effectively he can buy (Rs. 10,000/55) 182 dosas and not 200 dosas from the interest money at the end of a year.

Scenario 2

Low inflation 5.5%

If the saver deposited his money for a year @ 8% p.a. he would get Rs. 8000 as interest and he would be able to buy (8000/50) 160 extra dosas. But at the same time the inflation has reduced from 10% to 5.5%. that makes the cost of a masala dosa Rs 52.75. Thus the new number of dosas he can buy is (8000/52.75) 152 dosas.

After having read until now you must be wondering about the effectiveness of the Dosanomics, isn’t it? The calculation is wrong somewhere. So where is the error?

During high inflation one can buy 1818 dosas with Rs. 100,000 at Rs 55 per unit and 1896 dosas during low inflation. So ultimately,
High Inflation; High Interest Rate-- No of dosas: 1818+182=2000 dosas.
Low Inflation; Bit Low Interest Rate-- No. of Dosas: 1896+152=2048 dosas.

By this Dosanomics we now know that the savers are earning (48/2000) 2.5% more dosas at lower inflation levels!

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Transactional analysis : What is Transactional analysis ?

Transactional Analysis is a theory propounded by Eric Berne. Transactional Analysis is a psychoanalytic theory based on verbal communication between two people. This communication is called a Transaction.

According to Berne during a transaction a person sends the stimulus and the other person responds. The person sending the stimulus is called an Agent and the person receiving it is called the Respondent.

The psychology behind the concept of transactional analysis reasons it in terms of human thinking. When a person is confronted with a situation it is stored in his memory. And when encountered with another similar situation the brain brings out these memories not in its exact form but rather in the form of feelings that are associated with the memory. At a later stage the feelings and memories take form of alter ego in a person. During each transaction a person being an emotional being is filled with feelings and both parties hold to an alter ego while sending and receiving stimulus. There are three basic ego states- The parent ego, the child ego and the adult ego.

To understand the transactional analysis, it is important to understand the various alter ego states.

Ego States : What are the different Ego States ?

Parent Ego- Like a parent, parent ego is authoritative but also guiding. It often tells us the ‘how to’, dos, do not 's and the never's. Parent ego state can either be nurturing or controlling. Physical signs of this ego state include- body language with signs of impatience or anger. Verbal signs include use of criticising words, judgemental words and patronising language.

Child Ego- Child ego is characterised by joy, tantrums, curiosity, wanting to impress etc. It is the child in a person. In cases where anger and jealousy comes into play, it is the child ego state. This type of ego state can also be called the 'felt' ego state. Usually in a child ego state a person uses phrases like I don't know, I want, I don't care, superlatives etc.

Adult Ego- Adult ego state is our thinking self. The adult ego state comes between the child and the parent ego states, where with the help of others parent ego ones child ego develops into adult ego during adulthood. When we communicate if we receive information, process it and react afterwards we are in an adult ego state. Adult ego is marked with the ability to listen attentively, understand and communicate efficiently in a straight-forward manner. Common phrases used by a person in an adult ego state are- true, probably, possibly, I believe, I realise, in my opinion, comparative statements etc.

Four Life Positions

There are four common life positions that describe the different ego states. They are-

• I am Okay, you are Okay. This is the most mentally healthy position a person can be in. In this life position during a transaction both parties have an adult ego. In this life position people feel positive about themselves and others. Here people solve problems practically and act rationally.
• I am Okay, you are Not Okay. This is a parent ego state where one believes he is right and the other person is wrong. Here people feel they are victimised. Commonly people in this position feel miserable and blame others for their miseries.
• I am not Okay, you are Okay. Here the person is in a child ego state. A person compares themselves with others and feels that there are many things they don't have control over. So they tend to withdraw from others.
• I am Not Okay, you are Not Okay. This position is the most dangerous life position where a person can become depressed and have a feeling of anger and helplessness. But they must remember to grow. It is then that they find a purpose within themselves and stop looking outside for happiness and comfort, thereby making the conversation with others more constructive and leading to growth.

It is said that no human interaction is without a motive; a selfish one or a selfless one is the question, but does it even matter? Don’t we do everything to satisfy something in us that we deem necessary? A transaction indeed.

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Warren Buffett Quotes on Investing,Life,Success & Getting Rich

Warren Buffett, the 4th wealthiest man in the world today is the Chairman and CEO of Berkshire Hathaway and is universally known as the best investor. He believes in value investing and a frugal lifestyle and has stood by his core principles for decades. Every investor has a lot to learn from Buffett's investment experience and expertise spanning at least half a century. His simple yet hard-hitting investment principles and strategy can be best learnt from some of his famous quotes.

Top 12 best quotes of Warren Buffett

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