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

www.vustudents.ning.com

 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

# Money and Banking (MGT 411), Assignment # 1, Due Date: May 18, 2016

Money and Banking (MGT 411)
Assignment No. 1
Spring 2016
Total Marks 20
Learning Objective:
This assignment will enable the students to understand and calculate the inflation rate in a country keeping in view the price level and GDP statistics of that country.
Question No. 1 (Marks 15)
Suppose you are working in Pakistan Bauru of Statistics and given the responsibility of measuring the inflation rate in Pakistan for the last five years i-e, year 2011-2015. You have conducted a market survey and selected a basket of goods containing 8 mangoes, 6 apples and 4 onions and 2 eggs for measuring the inflation rate in the country.
Per unit prices of the selected goods are given in the following table:
Per Unit Prices in Rupees
Years Mango Apple Onion Egg
2011 10 3 2 2
2012 15 5 2 3
2013 18 6 3 5
2014 22 8 4 6
2015 25 10 5 8
Requirement:
You are required to calculate the inflation rate based on the above market data?
Note: You are required to provide complete working and formulas while calculating Inflation rate.

Question No. 2 (Marks 5)
Suppose you are required to measure the inflation rate on the basis on Nominal and Real GDP data of a country. How you will calculate inflation rate based on thefollowing data of Nominal and Real GDP of a country:

Years Nominal GDP
Rs. in million
Real GDP
Rs. in million
2013 50,500 44,200
2014 54,500 48,500
2015 60,000 52,000
Note: You are required to provide complete working and formulas while calculating GDP deflator and Inflation rate.

MGT411_Assignment # 1

+ 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?

Views: 2678

.

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

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

### Replies to This Discussion

read page 12 and 13 u can find the whole solution

zaria ye question 2 to hojaiga gdb or inflation wala
1st question me mango apple onoion ko kesy solve kriengy ?

mera first hua but second me inflation k leay cpi ni find krna a ra
and in sb ko pehly num of unit k sath multiply kro or amount plus kr do sb ki

means agr first me 80 ha mango to us me usi k next column me apple ki or fir next cloumn aisy sb ki price plus kr k 1 final table bnao jis me her row me sb sb ka total ho

This is the final table of Question 1...
Is it correct..

Years Cost of basket CPI    Inflation rate
2011 \$110                    100      n.a
2012 \$164                     149.1   49.1%
2013 \$202                      183.6   23.1%
2014 \$252                       229.1   24.8%
2015 \$296                       269.1   17.5%

1st part:

Years   Cost of Basket   CPI     Inflation Rate

2011       \$110           100.0         n.a

2012       \$164           149.1        49.1%

2013       \$202           183.6         34.5%

2014       \$252           229.1         45.5%

2015       \$296           269.1          40%

2nd Part:

Years    N.GDP      R.GDP      GDP. D      I.R

2013     50500     44200      114.25       n.a

2014     54500     48500      112.37     -1.88

2015     60000     52000      115.38       3.01

is it right?

i think ye correct hai.

ni hira mera aisa ans ni aya

ap ne inflation rate wrong find keay h 3rd pe aa k 183.6-149.1 then divide at 149.1 and multiply with 100

and gdp deflator se hm inflation kaisy find kr skty h book pe aisa ni h

## Latest Activity

4 minutes ago
11 minutes ago
Hooriyah Malik updated their profile
42 minutes ago
44 minutes ago
+ ! ! ! ! ! ! !pคຖ໓คค ! ! joined +M.Tariq Malik's group

### CS201 Introduction to Programming

48 minutes ago
Maham Raza. replied to Volunteer's discussion Tery liye..
49 minutes ago
Maham Raza. liked Volunteer's discussion Tery liye..
56 minutes ago
+ ! ! ! ! ! ! !pคຖ໓คค ! ! joined +M.Tariq Malik's group

### CS401 Computer Architecture and Assembly Language Programming

57 minutes ago
Volunteer posted a discussion

### Tery liye..

1 hour ago
1 hour ago
1 hour ago
khaaniii liked zohaib iftikhar's discussion ...* RAT WO PORY CHAND KI ...*
1 hour ago

1

2

3