inflation effect derivative market
This query is : Resolved
23 September 2007
What is inflation,and how it influences derivative market and country bank rate.
23 September 2007
Inflation: Drop in purchasing power of currency(new dimenson). It is a result of change in the ratio of availablity of funds/currency and goods. Bank rate is a tool to control the availability of funds so that the ratio can be managed under certain circumstances. The same principle will apply to derivative market to be influenced by inflation.
24 September 2007
Hi,
During inflation a bag full of money can buy only a handful of goods.During deflation a bag full of money can buy a truck full of goods.
Inorder to contain the flow of money inside the economy the RBI will increase the CRR so that banks cannot lend more.
Because of the higher prices therewill be less demand for the products and it will be affect the profitability of the companies in the derivative segment.
During inflation a bag full of money can buy only a handful of goods.During deflation a bag full of money can buy a truck full of goods.
Inorder to contain the flow of money inside the economy the RBI will increase the CRR so that banks cannot lend more.
Because of the higher prices therewill be less demand for the products and it will be affect the profitability of the companies in the derivative segment.
18 November 2007
inflation: Too much money chasing too few goods. Inflation will increase the prices.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Taxable or Tax exempt
- CAPITAL GAIN BASE ON NOTIFICATION
- Form 140 tds
- ITDS U/S.194T of Firm
- ADVANCE PAYMENT OF ADVOCATE
- NRI starting business in India
- Eway bill not cancelled within 24 hous what can be due
- EXPORT COMMERCIAL INVOICE HSN CODE
- REGARDING ANNUAL RETURNS FILLINGS OF A COMPANY INCORPORATED ON 28.03.2025
- Demand Outstanding AY 2013-14 TDS Deducted not shown in 26as
- DIN reactivation
- TDS Return Q1 FY 2026-27
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
- LLP audit under companies act
- Experienced CA recommendation from Kolkata for FNO return filing
- Interest Reporting in Form 168
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
