Interested to Buy Any Domain ? << Click Here >> for more details...
Why REPO rate is being hiked to control Inflation ?
- 4 Answers
- 15836 Views
- GMR, I also Faced
- E-Mail Answers
Answer Posted / abbas
first we have to know the defition and reasons for raising
of inflaion,then we can say easily the answer
What is Inflation?
Inflation is an increase in the price of a basket of goods
and services that is representative of the economy as a
whole.
What causes Inflation on a whole ?
>The supply of money goes up.
>The supply of other goods goes down.
>Demand for money goes down.
>Demand for other goods goes up.
so here, we concentrate on the
(DEMAND FOR MONEY GOES DOWN),here rbi intention is that to
create the demand to money,when rbi hike the rate of
reporate automatically banks also hike the interest rate on
the loans then customers are not come forward to take a
loans then there is no money in the market obivously, there
is a huge demand to the money in the market and again chain
will follow viz., supply....demand...(life cycle)
| Is This Answer Correct ? | 8 Yes | 3 No |
Post New Answer View All Answers
What is Sensex and how will you calculate it?
What strengths and experiences do you have that support your career aspirations?
What is the role of SEBI?
What Is Consumer Bank?
How many private life insurance companies in India?
These days Mutual Funds are common in the market. What do you know about them?
What are the different associate banks of SBI?
What are the various clauses of term loan agreement?
What do you know about Deflation?
What is Balanced Budget?
What is online banking?
What are the features of negotiability?
If I Decide To File For Bankruptcy, What Do I Have To Do Before I File?
what are the interview question for housing finance companies in credit department.
I would want to know detailed information on derivatives Could please help me
