We are receiving inflation in a numeric value. Can you explain how the number

We are receiving inflation in a numeric value. Can you
explain how the number is arrived??
And CRR is the ratio of the money the Bank/institution has
to keep the money with the RBI. Is there any interest being
paid by RBI to the Bank for the cash reserve fund with the
RBI?

Question Posted / solomon

1 Answers
3537 Views
I also Faced
E-Mail Answers

We are receiving inflation in a numeric value. Can you explain how the number is arrived?? And CR..

Answer / himanshu

Inflation is calculated on the basis of whole sale price
index. Example-

Say there are six commodities which are traded in a country
whose price are Rs5,10,15,20
the avg price would be 5+10+20+15/4 = 12.5
now the avg price in the next yr raises to 13.5
the rate of inflation would be=1/12.5 *100= 8%

CRR is the ammount which commercial banks have to park wid
RBI and RBI pays interest on it.

Is This Answer Correct ?

11 Yes

1 No

Post New Answer

More Banking Finance Interview Questions

Hi...im doin ma project in retail banking n ma topic s "study of performance of various retail loan produts in a bank"...can any1 throw light on developing a questionnaire on this... it shd include the diff categories of loans in it Thanxxx in advance

0 Answers

WHAT IS MISC EXPENDITURE?

1 Answers

What is a fairness opinion?

0 Answers

What is the difference between Long term Loan and Debt?

2 Answers

what is the official criterion for bluechip companies? what is sensex?

2 Answers HDFC,

consolidate balance sheet

3 Answers Capital IQ,

hi this is renuka i also face an interview in syndicate bank po of 23 aug 2009 plz suggest me the expected question what may they ask to me. my email id is renuka.ahlawat@gmail.com

0 Answers Syndicate Bank,

what is free float market capitalidation?

2 Answers

what is working capital

5 Answers Capital IQ,

What is a Joint Stock Company?

0 Answers Joint Stock Company,

I am attending the interview in ICICI BANK i need the interview tips and questions

0 Answers ICICI,

Which country has the minimum cash to GDP ratio?

0 Answers

For more Banking Finance Interview Questions Click Here