What is the concept of public debt? Public debt is the total amount borrowed by the Government to finance its development activities. Internal loans comprise more than 90% of the loans taken by the Central Government. The different sources of public debt are short-term borrowings, external assis...
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This number is multiplied by the amount of reserves to estimate the maximum potential amount of the money supply. For example, from Rs.100 can be multiplied by 5 to generate Rs.500 money supply if Reserve Ratio is 1/5 (20%) or when Money Multiplier is 5. When Reserve Ratio is 1/4 ...
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What is Reserve in Balance Sheet: Areserveis a retained earnings secured by a company to strengthen a company’s financial position, clear debt & credits, buy fixed assets, company expansion, legal requirements, investment and other plans. These are usually done to save the cash from being used...
If a debt is used more than a certain limit cost of equity will increase sharply and EPS will decline. (e) Floatation cost Funds raising cost is known as floatation cost. Public issue of the debenture will prove costly than taking debt from any financial institution. ...
Goodwill arises when a company acquires another entire business. The amount of goodwill is the cost to purchase the business minus the fair market value of the tangible assets, the intangible assets that can be identified, and the liabilities obtained in
the major advantage of open market operations is that they inject money directly into the economy (or they extract money directly from it). when the fed conducts open market operations, it wants to be able to have an impact on the money supply. relevant links upsc mains general studies ...