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

what is the difference between billable and nonbillable expenses?

3 Answers  


Short Answer on ___________Arbitrator

2 Answers  


​differed revenue expenditure

1 Answers   Capital IQ,


In a organization what are comes under DEBIT side? Ex" all assets natural position is debit. like

3 Answers  


Amount received on sale of old news paper --------receipt

3 Answers  






describe how accuracy in trial balance is a prime objective for preparing the financial statements?

2 Answers  


how many types of financial teribuanal? what is that?

0 Answers   Grand Bay,


Dear Friends i want to know full details about TDS and VAT. So please guide me a website which having the details of TDS,VAT.

1 Answers   TCS,


We are a education institute based in chennai.if i purchase a product in chennai and i transfer it to our branch which is in bangalore. we don't have tin nos,Sales tax nos, cst nos. We have only service tax nos. what is the procedure.

0 Answers  


difference between borrow and raise

1 Answers   State Bank of Hyderabad SBH,


expand G P F

3 Answers  


Define bank Cheque

2 Answers  


Categories