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How rising inflation would lead increase in India's GDP?
Firstly we understand how inflation measured. Inflation is measured by comparing the cost of things today with how much they cost a year ago. Rising inflation means pricing of the good and services are increasing continuously or fast change. So rising inflation can have both positive and negative imRead more
Firstly we understand how inflation measured. Inflation is measured by comparing the cost of things today with how much they cost a year ago. Rising inflation means pricing of the good and services are increasing continuously or fast change. So rising inflation can have both positive and negative impact on India’s GDP.
Positive impact depends on the economic environment, here is your answer:-
a) Rising wages: There is a tendency of producing an inflationary wage-price spiral. Employees call for increased salaries to cope with increased expenses, employers increase the prices of goods and services in order to recover increased expenses.
b) Impact on Markets: When inflation is high the stock price is thus low , while conversely the value of gold is high. lawsuit and resulted in higher interest rates.
c) Increased consumer spending: Inflation has dire consequences in that average prices of goods or service will go up. This can lead to consumer will spend more money in the present. Then more contribution to consumer spending has led to increased contribution to the GDP.
d) Increasing business investment: When prices are high there are big probabilities that many authorizations will employ more in production capabilities, hire more works. This will boost the economy.
e) Government revenue increases: When prices increase then the more revenue returns to government account through sales tax, Goods and services tax, tax deducted at source and other taxes. This revenue will in turn be used by government to construct more infrastructure in developing their project and social welfare.
See lessBanking & Monetary Policy
Monetary policy assists to solve the problems associated with banking crises in many ways. Here are the following:- 1. Provide liquidity in banking sector: the liquidity in the banks means that banking system refers to cash on demand which is the liquidity that banks require to meet the working of bRead more
Monetary policy assists to solve the problems associated with banking crises in many ways. Here are the following:-
1. Provide liquidity in banking sector: the liquidity in the banks means that banking system refers to cash on demand which is the liquidity that banks require to meet the working of business and financial requirements. Markets in banking normally supply the funds necessary to sustain the circulation of credit.
2. Decreasing interest rate: lowering interest rates on credit helps banks reduce their costs and continue investing to boost the economy.
3. Lending to solvent banks: Central banks are often lending the money to solvent banks to prevent bankruptcies. So that local people don’t have to face problems.
4. Asset-liability management (ALM) means balancing assets and liabilities. Banks balance their assets (loans) and liabilities (deposits) to ensure that they have enough liquid assets to meet short-term obligations while increasing earnings.
5. Funding sources: Nowadays, banks are trying to diversify their funding sources, such as supporting many pvt. or govt. schemes, helping the consumer to safe investment in stocks, bonds. Banks provide consumer options like debt fund, equity fund or hybrid fund etc. because of this banks maintains trust of consumers.
Banks used to compare metric (LDR) Loan-to-Deposit Ratio (LDR) to assess the bank’s loans and total depositing and investing. These measures can help to manage the financial health of banks.
See lessTo become CEO of your Company, which thing is matter? Is that Education, or Is that Experience or Is that Money.
To become a Chief Executive Officer (CEO), multiple factors comes into play including education, experience, networking, personality and also objectivity. A CEO is the topmost executive in an organization responsible for its growth, revenue generation and profitability. A CEO is usually highly qualiRead more
To become a Chief Executive Officer (CEO), multiple factors comes into play including education, experience, networking, personality and also objectivity. A CEO is the topmost executive in an organization responsible for its growth, revenue generation and profitability. A CEO is usually highly qualified and experienced professional.
Education:
A CEO’s qualifications often require formal education in business-related majors, industry experience and knowledge of multiple business and management domains although specifics may vary based on the organization’s scope and objectives.
Experience:
Years of experience in a leadership role are essential to develop the skills and knowledge needed to be a CEO. Most CEOs have at least five years of managerial experience. Picking the right companies is highly essential not only to gaining skills but also to building a good network of peers.
Networking:
Building meaningful relationships and connections is step one when it comes to expanding your influence. CEOs and C-suite leaders network with other business leaders and industry experts to exchange ideas and get advice, like mistakes to avoid or how to resolve a common labour concern. Reinventing the wheel is unnecessarily expensive and time-consuming.
Personality:
A CEO often focus on developing skills like communication, creativity, risk analysis, decision-making, critical- thinking, negotiation and time- management to successfully manage an organization.
A successful CEOs are capable for transforming the business landscape and sometimes, even the ecosystem in which the business operates. but, creating a career path to become a CEO is not easy. It varies based on companies, industries, market and people.
See less