MGT411 Assignment No 1 Solution & Discussion Due Date:12-04-2012

[+_Umair Malik_+]

SEMESTER SPRING 2012
MGT411 (Money and Banking)
Assignment No. 1
Due Date: April 12, 2012 Marks: 20
Assignment:
Question No. 1 (Marks 10)
Suppose you were given a responsibility to measure the inflation rate prevailing in the country for the
last five years. You conducted a survey in the market over the years and selected a basket of goods
containing 10 mangoes, 08 apples, 03 onions and 6 eggs for measuring inflation.
Per unit prices are given in the following table:
Per Unit Prices in Rupees
Years Mango Apple Onion Egg
2007 15 4 2 2
2008 20 5 2 3
2009 22 6 3 4
2010 30 10 3 5
2011 35 15 4 8
Requirement:
You are required to calculate the inflation rate based on the above market data?
Question No.2 (Marks 10)
The Central Bank (CB) is a supreme regulatory authority for the supervision of financial and banking
system in order to control the inflation and promoting economic growth in the country.
According to an annual report of the CB published at the end of the year 2011, the outstanding stock
of currency in the hands of the public was 866,700 million rupees; Traveler’s checks were amounting
to 415.3 million rupees; the Outstanding Stock of Time Deposits of Scheduled Banks was 1,204,340
million rupees; the Demand Deposits with Scheduled Banks were 802,570 million rupees; Other
Deposits with the CB were 4,680 million rupees; Institutional money market mutual fund shares were
1,205.8 million rupees; Large-denomination time deposits were 937.5 million rupees; the Outstanding
Stock of Resident Foreign Currency Deposits (RFCDs) was 170,130 million rupees and Eurodollars
and repurchase agreements were 416.7 and 235.5 million rupees respectively.
Keeping in view the above information, you are required to calculate M1, M2 and M3.
Note:
Only in the case of Assignment, 24 hours extra / grace period after the due date is
usually available to overcome uploading difficulties which may be faced by the students
on last date. This extra time should only be used to meet the emergencies and above
mentioned due dates should always be treated as final to avoid any inconvenience.
Important Instructions:
Please read the following instructions carefully before attempting the assignment solution.
Deadline:
· Make sure that you upload the solution file before the due date. No assignment
will be accepted through e-mail once the solution has been uploaded by the
instructor.
Formatting guidelines:
· Use the font style “Times New Roman”/ “Arial” and font size “12”.
· It is advised to compose your document in MS-Word 2003.
· Use black and blue font colors only.
Solution guidelines:
· Every student will work individually and has to write in the form of an analytical
assignment.
· Give the answer according to question.
· For acquiring the relevant knowledge don’t rely only on handouts but watch the
video lectures and use other reference books also.
Rules for Marking
Please note that your assignment will not be graded or graded as Zero (0) if:
· It has been submitted after due date
· The file you uploaded does not open or is corrupt
· It is in any format other than .doc (MS. Word)
It is cheated or copied from other students, internet, books, journals etc…
Important Note for those courses where calculations and graphs are
required.
· Calculate to the point where calculation is being required. NO need to write irrelevant
material or extra interpretation.
· Draw diagrams by yourself. Do NOT copy from any source. NO need to write
irrelevant material.SEMESTER SPRING 2012
MGT411 (Money and Banking)
Assignment No. 1
Due Date: April 12, 2012 Marks: 20
Assignment:
Question No. 1 (Marks 10)
Suppose you were given a responsibility to measure the inflation rate prevailing in the country for the
last five years. You conducted a survey in the market over the years and selected a basket of goods
containing 10 mangoes, 08 apples, 03 onions and 6 eggs for measuring inflation.
Per unit prices are given in the following table:
Per Unit Prices in Rupees
Years Mango Apple Onion Egg
2007 15 4 2 2
2008 20 5 2 3
2009 22 6 3 4
2010 30 10 3 5
2011 35 15 4 8
Requirement:
You are required to calculate the inflation rate based on the above market data?
Question No.2 (Marks 10)
The Central Bank (CB) is a supreme regulatory authority for the supervision of financial and banking
system in order to control the inflation and promoting economic growth in the country.
According to an annual report of the CB published at the end of the year 2011, the outstanding stock
of currency in the hands of the public was 866,700 million rupees; Traveler’s checks were amounting
to 415.3 million rupees; the Outstanding Stock of Time Deposits of Scheduled Banks was 1,204,340
million rupees; the Demand Deposits with Scheduled Banks were 802,570 million rupees; Other
Deposits with the CB were 4,680 million rupees; Institutional money market mutual fund shares were
1,205.8 million rupees; Large-denomination time deposits were 937.5 million rupees; the Outstanding
Stock of Resident Foreign Currency Deposits (RFCDs) was 170,130 million rupees and Eurodollars
and repurchase agreements were 416.7 and 235.5 million rupees respectively.
Keeping in view the above information, you are required to calculate M1, M2 and M3.
Note:
Only in the case of Assignment, 24 hours extra / grace period after the due date is
usually available to overcome uploading difficulties which may be faced by the students
on last date. This extra time should only be used to meet the emergencies and above
mentioned due dates should always be treated as final to avoid any inconvenience.
Important Instructions:
Please read the following instructions carefully before attempting the assignment solution.
Deadline:
· Make sure that you upload the solution file before the due date. No assignment
will be accepted through e-mail once the solution has been uploaded by the
instructor.
Formatting guidelines:
· Use the font style “Times New Roman”/ “Arial” and font size “12”.
· It is advised to compose your document in MS-Word 2003.
· Use black and blue font colors only.
Solution guidelines:
· Every student will work individually and has to write in the form of an analytical
assignment.
· Give the answer according to question.
· For acquiring the relevant knowledge don’t rely only on handouts but watch the
video lectures and use other reference books also.
Rules for Marking
Please note that your assignment will not be graded or graded as Zero (0) if:
· It has been submitted after due date
· The file you uploaded does not open or is corrupt
· It is in any format other than .doc (MS. Word)
It is cheated or copied from other students, internet, books, journals etc…
Important Note for those courses where calculations and graphs are
required.
· Calculate to the point where calculation is being required. NO need to write irrelevant
material or extra interpretation.
· Draw diagrams by yourself. Do NOT copy from any source. NO need to write
irrelevant material.

[+_Umair Malik_+]

Plzz discuss the assignment here...

[nazia yasmeen]

plzzzzzzz anybody upload the solution file.

[Kaneez E Attar]

koi tou solution file upload kr dain :(

[nazia yasmeen]

ya right solution hai bro g???

[+M.Tariq Malik]

Question No. 1

Suppose you were given a responsibility to measure the inflation rate prevailing in the country for the

last five years. You conducted a survey in the market over the years and selected a basket of goods

containing 10 mangoes, 08 apples, 03 onions and 6 eggs for measuring inflation.

Per unit prices are given in the following table:

	PER UNIT PRICE IN RUPEES
YEARS	MANGO	APPLE	ONION	EGG
2007	15	4	2	2
2008	20	5	2	3
2009	22	6	3	4
2010	30	10	3	5
2011	35	15	4	8

 

ANSWER:

  MEASURE OF INFLATION THROUGH CONSUMER PRICE INDEX

 

 

YEARS	COST OF BASKETS	CPI	INFLATION RATE
2007	200	100.0	N.A
2008	264	132	32  %
2009	277	138.5	6.5 %
2010	419	209.5	71  %
2011	530	265	55.5 %

[+M.Tariq Malik]

_Umair Malik_ always try to use the proper discussion title like MGT411 Assignment no 1 Solution & Discussion Due Date:12-04-2012

Thanks for understanding 

[Haleema Safdar]

PLZ DISCUSS THE SECOND QUESTION SOLUTION???

[+M.Tariq Malik]

second question kay answer kuch aisay niklay hain....
M1 = 1,674,365.3
M2 = 3,048,835.3
M3 = 3,051,630.8

[+M.Tariq Malik]

YEARS	COST OF BASKETS	CPI	INFLATION RATE
2007	200	100	n/a
2008	264	132	32%
2009	277	138.5	6.5%
2010	419	209.5	71%
2011	530	265	55.5%

[faarukh javed]

Tariq bahi,

277 is wrong and after 2nd Inflation which is 32% all below calculations are wrong.

formula is (B-A)/A*100

[faarukh javed]

22*10,8*6,3*3,6*4=??

[sani sweet]

CPI

100

132

150.5

209.5

265 Inflation rate n.a 32% 14% 39.2% 26.49%