Question
Suppose a country experiences a high rate of inflation
due to excessive government spending and monetary expansion. The central bank wants to control inflation. Which of the following actions would be most effective in reducing inflation? ÂSolution
- Inflation occurs when too much money is circulating in the economy .Â
- Selling government securities (open market operations) withdraws money from circulation , reducing inflationary pressure.Â
- Reducing interest rates (A) and increasing money supply (B) would further fuel inflation .Â
- Lowering reserve requirements (D) increases lending, also worsening inflation .Â
A and B started a retail store with initial investments in the ratio 5:6 and their annual profits were in the ratio 2:3. If A invested the money for 8 m...
If the ratio of time periods of investment of A and B is 3:5, profit at the end of the year is Rs.120000 and A’s share in it is Rs.20000, then what is...
- ‘X’ started a business by investing Rs. 2,000. After 3 months, ‘Y’ joined with 50% of X’s investment. If the annual profit is Rs. 6,600, find the...
Rs. ‘y’ was invested in scheme A at the rate of 21% per annum for (t+2) years. Rs. (y+2400) was invested in scheme B at the rate of 18% per annum fo...
A invested Rs. (P + 1200). After 3 months, B joined with Rs. 3P. If B’s share to A’s share of the annual profit is 9:5, determine (P − 600).
...X, Y, and Z each invested amounts of Rs. 60,000, Rs. 180,000, and Rs. 100,000 at an annual simple interest rate of 5%. The investment durations for X, Y...
A and B enter into partnership. A invests some money at beginning, B invests thrice the amount after 4 months and C invests double the amount after 9 mo...
A started a business with an investment of Rs.30000. After few months B joined him with an investment of Rs.42000. If at the end of the year, they share...
Raj invested Rs.32000 in a business. After 7 months, Rohan joins him with an investment of Rs.P. If at the end of the year the profit is Rs.55000 and pr...
'A' and 'B' started a partnership by investing Rs. 9,000 and Rs. 12,000 respectively. 25% of the total profit is given to 'A' for managing the business,...
