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
- STCG....................................................
- Supply through E-commerce Operators
- AMOUNT RECEIVED UNDER COMPULOSRY ACQUISITION OF AGRICULTURAL LAND
- Relief u/s Section 89
- TAN for Partnership
- Sales return eway bill
- Is E Way Bill Valid If Transport ID Not Mentioned in PART A But Vehicle details mentioned in PART B
- E way bill for tractors
- REGARDING GST LIABILITY/....
- Specified Profession
- CA IPCC Registeration in 2012, Is my registration Active or Expired
- Plot of land. Cost of Acquisition
- Section 54F - Exemption on LTCG in 2026 for HP purchased in 2023
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- Nomination of Bank for refund in itr 2
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
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
