Showing posts from June, 2017
The advantages of management accounting are summarized below: 1. Helps in Decision Making: Management accounting helps in decision making such as pricing, make or buy, acceptance of additional orders, selection of suitable produ…
Main objective of management accounting is to help the management in performing its functions efficiently. The major functions of management are planning, organizing, directing and controlling. Management accounting helps the man…
Three important thoeries for the exchange rate determination are: 1. Mint Parity Theory (Gold Standard) 2. Purchasing Power Parity PPP Theory 3. Balance of Payments (BOP) Theory 1. Mint Parity Theory (Gold Standard): However, t…
Meaning of Foreign Exchange Market The term market has been interpreted in Economics as the place where both the buyers as well as the sellers meet and they buy and or sell goods. The foreign exchange market is a place where the …
Solution to correct balance of payment disequilibrium lies in earning more foreign exchange through additional exports or reducing imports. Quantitative changes in exports and imports require policy changes. Such policy measures …
Balance of Payment of the country is determined by a multiplicity of forces and the equilibrium in it is the resultant of numerous inter-related elements. The main types of disequilibrium in the balance of payment are as follows:…
Disequilibrium in Balance of Payment Though the credit and debit are written balanced in the balance of payment account, it may not remain balanced always. Very often, debit exceeds credit or the credit exceeds debit causing an …
Balance Of Payments: Balance of payments is a record of a country’s trade in goods, services, and financial assets with the rest of the world. Balance of payments is a record of the total receipts and payments between one countr…
Monetary Policy Reforms in India: The Monetary Policy of the RBI has undergone massive changes during the economic reform period. After 1991 the Monetary policy is disassociated from the fiscal policy. Under the reform period an…
The instrument of monetary policy are tools or devise which are used by the monetary authority in order to attain some predetermined objectives. There are two types of instruments of the monetary policy as shown below: 1. Quanti…
Through the monetary policy is useful in attaining many goals of economic policy, it is not free from certain limitations. Its scope is limited by certain peculiarities, in developing countries such as India. Some of the importan…
Meaning of Monetary Policy The term monetary policy is also known as the 'credit policy' or called 'RBI's money management policy' in India. How much should be the supply of money in the economy? How much shou…
Professor Taussing has defined it in the following words: "Double the quantity of money and other things remaining the same prices will be twice and the value of money one half. Half the quantity of money prices will be on…
T rade Cycle: The business activities always keep on changing sometimes there is a period of good trade and some times bad. A period of good trade is followed by a period of bad business conditions. These ups and downs don’t rem…
Paper Money: Paper money is the most advanced form of money. It fulfils almost all the qualities of good money, as it is economical, easily recognizable, portable and storable. Paper money can be classified into representative, …
A good money material must possess following qualities: 1. General Acceptability A good money material is one that I generally acceptable by all without any hesitation. It means that any one will be willing to accept it as a me…
There are many forms of money. Following are the main forms of money. 1. Metallic Money 2. Paper Money 3. Bank Money 4. Legal Money 5. Plastic Money 6. Near Money 1. Metallic Money The money made of any metal such as gold, silve…
