Tutor profile: Arunima P.

What are local variables and global variables in Python?

Variables declared outside a function or in global space are called global variables. These variables can be accessed by any function in the program. Any variables declared inside a function is known as a local variable. This variable is present in the local space and not in the global space. a=2 def add(): b=3 c=a+b print(c) add() Output: 5 When you try to access the local variable outside the function add(), it will throw an error.

How monetary policy works? How do you think monetary policy affects the financial system?

When the central bank raises the short rate –then banks react to this in a way that isn’t completely competitive. It’s got a form of a monopolistic power to it. They don’t raise the interest rate that they pay on savings deposits to people by the same amount that the central bank raises the short rate that exists in the competitive market that banks lend to each other or firms lend to banks. In fact, data shows that banks raise deposit rates by only about 35% to 40% of whatever the central bank raises its rate by. That means they get to charge depositors a big spread, so they make a lot of money off of this. But that by itself wouldn’t give you a channel. What gives you a channel is that while most people are insensitive to this spread — which is why the banks can charge it — some people do pull their money out of deposits. Because deposits are still a central source of funding for the banking system, as they pull some of the money out of deposits, they shrink the amount of funding available to banks, which in turn causes banks to have to contract the amount of lending and the amount of assets that they buy. T

Fintech is the introduction of technology in Finance. How do you think Fintech is Revolutionizing Financial Services?

New technologies are disrupting the financial services industry, like they have in many other markets. From peer-to-peer lending and robo-advisors to bitcoin and crowdfunding, financial technology or fintech is smashing old business models on its way to crowning new rulers in the world of money. And there is no turning back.