besides being inflationary. An understanding between SBP and the government to restrict such borrowings at the end-Sept level of Rs1‚ 290 billion will help in restraining the printing of new notes and to reduce the currency in circulation. If the inflation had increased due to printing of new currency notes it will reduce the financial intermediation. The currency in circulation has increased by Rs263 billion during 2011‚ showing a year-on-year growth of 19 per cent as on Feb 15‚ 2011 from June 30
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CONFIDENTIAL BM/JUN 2012/ECO415 UNIVERSITI TEKNOLOGI MARA FINAL EXAMINATION COURSE COURSE CODE EXAMINATION TIME ECONOMICS EC0415 JUNE 2012 3 HOURS INSTRUCTIONS TO CANDIDATES 1. This question paper consists of two (2) parts PART A (2 Questions) PART B (4 Questions) Answer ALL questions from PART A and three (3) questions from PART B in the Answer Booklet. Start each answer on a new page. Do not bring any material into the examination room unless permission is given by the invigilator
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The Role of Central Bank Bank of Thailand (Central Bank of Thailand) The Bank of Thailand Act was promulgated on April 28‚ 1942 conferring the status of a juridical person on the Bank of Thailand and allowing it to carry out all central banking functions. The Bank of Thailand started operations on December 10‚ 1942. As per the Bank of Thailand Act‚ 1942‚ the Minister of Finance is charged with powers to look after the overall functions of the bank. The main objective of the bank is to maintain
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QUESTION ONE WHY MULTINATIONALS FIRMS MUST ASSESS THE BUSINESS ENVIRONMENT OF COUNTRIES THEY OPERATE AND INTEND TO OPERATE IN. Multinational Corporation/Firm is a business that produces or distributes products or services in one or more foreign countries by establishing a branch or affiliate there. These multinational Corporations operate in a complex business environment. Cultural‚ social‚ economic‚ political and technological systems vary from country to country. In order to operate successfully
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Alternatively‚ it could be due to a switch in investors’ preferences from dollar to non-dollar assets. 3. In early 1996‚ the short-term interest rate in France was 3.7%‚ and forecast French inflation was 1.8%. At the same time‚ the short-term German interest rate was 2.6% and forecast German inflation was 1.6%. a. Based on these figures‚ what were the real interest rates in France and Germany? Answer. The French real interest rate was 1.037/1.018 - 1 = 1.87%. The corresponding real rate
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chicken that costs $10. As long as money keep its value stable‚ people saving money into purchasing power in the future‚ because money can store of values. 2. State and explain Friedman’s Theory of Inflation. State and explain Fisherian Theory of Interest Rate. Friedman’s theory of inflation is that there is a lot of money chasing too few goods. For example‚ diamonds are dropping their prices to every household‚ because every one can afford the price to buy more diamonds‚ so
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Bebe Market Analysis Qualitative analysis of stocks performance There are various external factors that affected Bebe’s stock price throughout the past 5 years. In 2006 when the housing boom collapsed in the US‚ Bebe’s stock price plummeted. The collapse affected a large portion of the publicly traded companies on the stock market. As the value of American homes declined‚ disposable income also goes down. This leads to unemployment rates rising inversely with the stock price declining
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on Monday voiced serious concern over the rising crude oil prices‚ which have touched a two-year high‚ and said it could badly affect global economic growth and even give rise to inflationary pressures. "The current oil prices will spur global inflation and retard economic growth. India feels that this is the concern that needs to be addressed on priority‚" Minister of State for Petroleum and Natural Gas‚ R.P. N. Singh said at the 4th Asian Energy Ministerial Round Table in Kuwait. Mr. Singh said
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and the Philippines According to Cristeta B. Bagsic‚ the Phillips Curve “depicts the trade-off between inflation and unemployment rate” (“The Phillips Curve and Inflation Forecasting: The Case of the Philippines”). Nowadays‚ the relationship depicted by the Phillips curve is specified in the following equation: πt = πe – γ(UR – UR*) + v where πt is the inflation rate‚ πe is the expected inflation‚ γ is a parameter‚ UR is the unemployment rate‚ UR* is the natural rate of unemployment (NRU)‚ and v
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reflected the existence of a positive relationship between the increase of money supply and the level of inflation. Generally‚ this is reflected by the continued rise of prices of the various products. A situation ensues where excess amounts of money tend to be chasing too few goods. In this perspective‚ this study tested on whether monetary policy is an effective tool in the combating of inflation. The data utilized was derived from Kenya’s economic situations over a range of years. The period in perspective
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