We are here with you hands in hands to facilitate your learning & don't appreciate the idea of copying or replicating solutions. Read More>>

Looking For Something at vustudents.ning.com? Click Here to Search

www.bit.ly/vucodes

+ Link For Assignments, GDBs & Online Quizzes Solution

www.bit.ly/papersvu

+ Link For Past Papers, Solved MCQs, Short Notes & More


Dear Students! Share your Assignments / GDBs / Quizzes files as you receive in your LMS, So it can be discussed/solved timely. Add Discussion

How to Add New Discussion in Study Group ? Step By Step Guide Click Here.

Suppose there is hyperinflation prevailing in a country. To solve this problem, the central bank of the country is planning either to change the bank’s minimum reserve requirement or resolve this issue through Open Market Operation (OMO). Which one of these two alternatives is best to solve the problem in the long run? Give logical reasons to support your answer.

+ How to Follow the New Added Discussions at Your Mail Address?

+ How to Join Subject Study Groups & Get Helping Material?

+ How to become Top Reputation, Angels, Intellectual, Featured Members & Moderators?

+ VU Students Reserves The Right to Delete Your Profile, If?


See Your Saved Posts Timeline

Views: 1389

.

+ http://bit.ly/vucodes (Link for Assignments, GDBs & Online Quizzes Solution)

+ http://bit.ly/papersvu (Link for Past Papers, Solved MCQs, Short Notes & More)

+ Click Here to Search (Looking For something at vustudents.ning.com?)

+ Click Here To Join (Our facebook study Group)

Replies to This Discussion

Please Discuss here about this GDB.Thanks

plz solve this prolem

plz help me solution Mgt411 gdb

yar solution koi jaldi upload kr dy. Thanx

MGT411 GDB Idea guidline
In My opinion.
Open market operation is best to prevent inflation for long term becuase it indirectly control the total money supply , short term interest rate and supply of base money.In OMO a central bank buys or sells government bonds on the Open Market. The OMO is a means through which inflation can be controlled because when treasury bills are sold to commercial banks these banks can no longer give out loans to the public for the long period and therefore money is being reduced from circulation

Because of the potential for hyperinflation, the Federal Reserve uses reserve requirements to limit the growth of the money supply. If the Board of Governors sees inflation as a serious economic problem, the reserve requirement can be increased to further limit the ability of banks to make loans and create money. The Fed can also reduce the reserve requirement, to make more money available to stimulate the economy during a recession. While some factors limit its effectiveness, the reserve requirement remains a very powerful tool of the Federal Reserve Although its effectiveness may be limited by several factors, the reserve requirement remains the most powerful single tool in the Federal Reserve’s arsenal to combat economic instability. More importantly, the reserve requirement stands as one important protection against the hyperinflation that has seriously crippled economies around the world.

Imrana Manzoor gud keep it up 

MGT411 GDB IDEA SOLUTION

Solution :
The operations of Open market is best to prevent inflation for long term because it indirectly control the total money supply , short term interest rate and supply of base money. In OMO a central bank buys or sells government bonds on the Open Market. The OMO is a means through which inflation can be controlled because when treasury bills are sold to commercial banks these banks can no longer give out loans to the public for the long period and therefore money is being reduced from circulation

Thanks for gud ideas...

thanks

RSS

© 2020   Created by +M.Tariq Malik.   Powered by

Promote Us  |  Report an Issue  |  Privacy Policy  |  Terms of Service

.