Can anybody tell what is the link b/w reporate and
inflation? How these parameters vary???

Answers were Sorted based on User's Feedback



Can anybody tell what is the link b/w reporate and inflation? How these parameters vary???..

Answer / sumbul

when the Central Bank of any country increases their repo
rate ( the rate at which banks borrow from the central bank)
it eventually makes the other banks of the country increase
their prime lending rates (PLRs). when the PLRs increases
the people borrow less from the banks which leads to
reduction in demand which inturn ultimately helps in curbing
the rising inflation.

Is This Answer Correct ?    3 Yes 0 No

Can anybody tell what is the link b/w reporate and inflation? How these parameters vary???..

Answer / siva

If anybody know the answer please tell me.

Is This Answer Correct ?    0 Yes 0 No

Can anybody tell what is the link b/w reporate and inflation? How these parameters vary???..

Answer / manmohan singh

there is a grate relation between repo rate and the inflation of the country.The banks borrow from central bank at a fix rate of interest rate which is specified by the central bank to control the liquidity position in the market.Central bank decrease repo rate to inflow more liquidity in the market by which the the banks borrow more and lend to the borrower.When borrower borrow more they spend more which generate more inflation becouse the demand of the product would be more but the supply would me same as it was previous.So by this way central bank control inflation.

Is This Answer Correct ?    1 Yes 2 No

Post New Answer

More Accounting AllOther Interview Questions

Expand---------RMP

1 Answers  


can any one tell me the Types of accounts in practise

5 Answers  


fill in the Blanks We are at obligation to pay Fringe Benifit Tax even though we are in _______________

1 Answers  


fill in the Blanks ______________will decrease the pwners equity

1 Answers  


What is the use of final account?

0 Answers  






Expand C R R

6 Answers  


Answered but misspelled pl correct SUPPLIERS ACCOUNTING BALANCE WILL BE ALWAYS (ANS.TIDERC)

2 Answers  


how did you know about capitaliq? what is the meaning of iq.

9 Answers   Capital IQ, Genpact, IQ, Neptune,


what is transaction?

5 Answers   Capital IQ,


How exchange rates are maintained in sap

0 Answers  


Can anybody tell me about the liability positions of 1.Sole trader 2.Partnership 3.Pvt ltd co 4.Public ltd co

2 Answers  


what business entity concept ?

3 Answers  


Categories