Topic :: Inflation
. Inflation is caused by : (1) Increase in money supply (2) Decrease in money supply and fall in production (3) Fall in production (4) Increase in money supply and fall in production
3 3973. Temporary control of inflation can be effected by: (1) Increasing the prices (2) Increasing the taxes (3) Restraint on the growth of money supply (4) Reducing the prices
2 10564. A zero rate of inflation obtains necessarily in a year where the annual rate of inflation (a) In every week of the year is zero (b) Is falling in every week of the year (c) Is both falling and rising in a year (d) Is constant in every week of the year
1 3751We 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?
1 3564
Read the case given below and answer the questions given at the end. Krutika Designers Ltd is an Indian company engaged in designing shirts for an international shirt manufacturer. Its operations are currently restricted to designing shirts for the Indian market. The firm is interested in extending its operations to the European markets, but is restricted by its lack of knowledge about the latest fashions and trends prevailing there. Hence, the firm has decided to open an office in Finland for establishing a network in Europe that will give the firm access to the needed information. The firm feels that its does not have the capability of sustaining itself in the foreign markets in the long-term, and will be able to generate additional revenue from these activities only for the next 5 years. After that, the Finnish office will have to be closed down. The firm anticipates an initial investment of Rs.14 million. The project is expected to generate the following cash flows over the 5 years period. Year Cash flow (Finnish Marks) 1 2 3 4 5 10,00,000 20,00,000 50,00,000 50,00,000 30,00,000 These cash flows are expressed in terms of today’s money. The firm can claim depreciation in India according to the Straight Line Method. The salvage value from the project is expected to be nil. The Finnish Government does not provide any incentives for foreign investments. However, currently it is making an attempt to have better economic ties with India. Hence, it has decided to extend a loan of 50,000 marks to Krutika Designers. The loan will be at a concessional interest rate of 7%. The loan is to be repaid in 5 equal annual installments which will include the interest payments. The project will generate additional borrowing capacity of Rs.5 million for the firm. However, as the firm does not have any firm contract with the international shirt manufacturer, its domestic revenues are expected to be very volatile. Therefore, there is no surely that the firm will be able to absorb the tax benefits arising out of depreciation and additional borrowing capacity. The firm does not intend to indulge in any illegal money transfers. The current spot rate for the Finnish Mark is Rs.7.25/FM. The inflation rates in India and Finland for the next 5 years are expected to be 8% and 3% respectively. The exchange rate is expected to move in tandem with the inflation rates. Indian tax rate is 35% while Finnish tax rate is 40%. India and Finland have entered into a tax treaty whereby the earnings of the residents of one country are taxable in that country only. In India, the nominal risk-free interest rate is 11%. The same is 6% in Finland. The Indian nominal interest rate (including risk-premium) is 15%, while that in Finland is 9%. The nominal all-equity rate in India is 18%. 1. Comment on the financial viability of the project. 2. What are the different circumstances in which nominal all-equity discount rate and real all equity discount rate should be used for discounting the cash flows? Explain the rationale behind it. 3. Comment on the financial viability of the project if the firm is sure about being able to absorb the tax benefits arising out of depreciation and increased borrowing capacity. 4. Explain the concept of exchange risk and how it affects an international project. 5. How can the financial structure of a project be used to overcome repatriation restrictions? What are the additional benefits of such maneuvers?
what is current inflation and crr,repo rates andbank interest rate
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Can anybody give the ans for this questions it will be helpful for the interview, what are the challanges for banks in future as how to compete with public banks? how to fight with inflation? how to maintain the eco. growth in respect of SEBI & RBI regulations?.
hi...i m pinkee, persuing graduation in biotechnology and i am selected for sbi clerical interview. please send me questions that can be asked in interview........... and also send answers of question given below.. internet banking what is a company? advantages of nationalisation of banks what is inflation? bussiness undertaken by banks bank interdetness introduction of technology in banks
How Government calculate Inflation Rate
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Discuss briefly the causes and consequences of ‘inflation’ in an economy like India.
hii,i was appeared in recruitment process of Catholic Syrian Bank.Interview question were general banking related... as what is crr,calling rate, current inflationrate etc
what are the charecteristics of cost accounting financial accounting managment accounting payroll accounting environmental accounting h r accounting forensic accounting inflation accounting?
During periods of Inflation, tax rates should increase.why?
