Question
Consider the following statements regarding the “base
effect” in inflation calculation: 1. Base effect depends on the price level of the corresponding month in the previous year. 2. Very high prices in the previous year may result in lower current inflation readings. 3. Very low prices in the previous year may create a favorable base effect. Which of the statements given above is/are correct?Solution
Base effect refers to the influence of the previous year’s price level on current inflation calculation. If prices were very high last year, current inflation may appear lower due to a favorable base effect. If prices were very low last year, inflation may appear higher, which is called an unfavorable base effect. Hence Statement 3 is incorrect.
What is the main goal of the SEBIdirected industrywide stress tests for the mutual fund industry?
A company fails to accrue wages for March that will be paid in April. The company’s year-end balance sheet liabilities:
Which of the following sub-systems of human resource development is concerned with increasing the employee performance by increasing his/her knowledge ...
The process in which certain types of assets are pooled so that they can be repackaged into interest-bearing securities is called:
Which of the following is an unconventional monetary policy tool used by the Reserve Bank of India?
 You are given the following information. What will be the total of the prime cost?
Based on the following information- calculate the initial investment in the project.
Cost of machine = Rs. 54,00,000
Installation charges ...
Which of the following conditions would cause the break-even point to increase?
Gold (Metal) Loans can be extended by nominated banks to which of the following entities?
The cost incurred for an additional product is known as ________
Relevant for Exams:
