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Monetary Policy vs. Fiscal Policy

  Monetary Policy vs. Fiscal Policy Monetary policy is enacted by a central bank to sustain a level economy and keep unemployment low, protect the value of the currency, and maintain economic growth. By manipulating interest rates or reserve requirements, or through open market operations, a central bank affects borrowing, spending, and savings rates. Fiscal Policy    is an additional tool used by governments and not central banks. While the Federal Reserve can influence the supply of money in the economy and  impact Market Sentiment , The U.S. Treasury Department can create new money and implement new tax policies. It sends money, directly or indirectly, into the economy to increase spending and spur growth. U.S. Department of the Treasury. " Role of the Treasury ."

Monetary policy

  Monetary policy  Monetary policy is a set of tools used by a nation's Central Bank  to control the overall money supply and promote economic growth and employ strategies such as revising interest rates and changing bank reserve requirements. Monetary policy is a set of actions to control a nation's overall money supply and achieve economic growth. Monetary policy strategies include revising interest rates and changing bank reserve requirements. Monetary policy is commonly classified as either expansionary or contractionary. The Federal Reserve commonly uses three strategies for monetary policy including reserve requirements, the discount rate, and open market operations. Goals of Monetary Policy Inflation Contractionary monetary policy is used to temper inflation and reduce the level of money circulating in the economy. Expansionary monetary policy fosters inflationary pressure and increases the amount of money in circulation. Unemployment An expansionary monetary polic...

Change in Fiscal Policy Have a Multiplier Effect on the Economy?

  How Can a Change in Fiscal Policy Have a Multiplier Effect on the Economy?  A shift in fiscal policy can significantly impact the economy through several channels: 1. Government Spending:  Increased government spending boosts demand and production, creating jobs and enhancing economic activity. 2. Tax Cuts:  Lower taxes increase disposable income, encouraging consumption and investment, which leads to greater production and job opportunities. 3. Crowding-in Investment:  Government initiatives can attract private investment, enhancing the effects of spending and further stimulating the economy. 4. Multiplier Effect:  An initial rise in spending or tax cuts can lead to a larger increase in national income, as one person's spending becomes another's income, creating a cycle of growth. 5. Economic Stabilization:  Fiscal policy can stabilize the economy during downturns or inflation by adjusting spending and tax rates, mitigating economic shocks and suppo...

Financial Regulatory Bodies in India

  Financial Regulatory Bodies in India Financial Regulators In India RBI:  Reserve Bank of India (RBI) conducts the country’s monetary policy. SEBI:  The market regulator in the Indian capital market is the Securities and Exchange Board of India (SEBI). IRDAI:  The Insurance Regulatory and Development Authority (IRDA) does the same for the insurance sector.  PFRDA:  Pension Funds Regulatory and Development Authority (PFRDA) regulates pensions.                 RBI The RBI’s primary responsibility is to ensure price stability in the economy and control credit flow in the various sectors of the economy. Commercial banks and the non-banking financial sector are most affected by the RBI’s pronouncements since they are at the forefront of lending credit. The RBI is the  money market and the banking regulator in India. Its functions include: Printing and circulating currency throughout the country Maintaining banking se...

Being a Stock Market Educator

HI ALL,  I am Manju, I am an X  IT professional with BE ,MBA Degree.  I am a pure Investor and i was a trader long back, I started involving myself more into market once the chart started reacting for my analysis, I resigned my job, Now a Beautiful house wife along my charts and news. I love to analyze a  company more than predicting charts, Started doing this for years as a routine, this has become a habit. Started guiding my friends then i understood i love to teach ....I started writing more about financial market,  Since 9 years i am helping people how to learn Financial Market with minimal fees. I never felt stressed, i never felt bad or irritated when clearing doubts, Because i took class for people who approached me and i never approached them. One fine day..... Many fnds pushed me, lets do marketing and lets make it a professional one. All pain starts from here, Its been 4 months we start doing marketing, Hardly i have taken class for 4 students apart fr...

Apartment maintenance over Rs 7,500 to attract 18% GST

  Apartment maintenance over Rs 7,500 to attract 18% GST; panic among residents over compliance burden 18% GST on Apartment Maintenance Above Rs. 7,500 As more people are living in apartments in cities, the government has decided to charge 18% GST on monthly maintenance fees. In Karnataka, around 50 lakh people live in Bengaluru apartments, with 40 lakh more in cities like Mysuru, Mangalore, Hubbell, and Belagavi. GST will be applicable in case the monthly maintenance is over Rs. 7,500 or if the total annual maintenance collection is more than Rs. 20 lakh. Even for one-time costs like painting or lift replacement, GST will still apply. This has triggered the apartment residents, and they are wondering whether they should go for GST registration. If the societies are registered under GST for once, they will need to file two returns every month (on the 11th and 20th), along with an annual return. Many people assume that the GST rate is 5%; however, in reality, it is 18%. Therefore, e...

The Beginner’s guide explains the essential steps to invest in stocks

  The beginner’s guide explains the essential steps to invest in stocks Investing in stocks can be a powerful way to grow your wealth over time. It involves buying shares in a company with the hope that the company will grow and perform well in the stock market for the long term, resulting in gains on your investment. It's important to start by setting clear investment goals Determining how much you can invest How much risk you can tolerate Pick a broker or be your own stock broker                                                                    How can you be your own stock broker for your own portfolio? You need a clear idea how the financial market works Should understand Technical way of approach and Fundamental approach when comes fundamental approach we have to be clear in macro and micro economic dat...