Posted by wktd in portal.cgkq.com
you can find your answer at:-
http://in.reuters.com/article/domesticNe...
http://www.newstrackindia.com/search/?q=...
INFALTION MAKES POSSIBLE FOR YOU TO CONTROL YOUR BUYING NATURE OF EVERYKIND OF GOODS,So how banks will make their profits from GIVING LOAN AMOUNTS.Because of high inflation, RBI has increased the CRR rates, which means withdrawal of more free flow of funds from the banking sector and their lending source of funds come down, there by price rice can be controlled. Naturally the banks liquidity will be affected and they have to make money only with the limited source available with them. Now after this Financial Tsunami RBI has reduced the CRR hike and there by more funds into the market and asked the bankers to lend more money to mutual funds and there by save the falling share prices because of heavy selling from FIIs
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