Monetary policy

answered on 04-Jun-21 09:49

Asset Price channel: When interest rates increase the demand for debt instruments paying interests also increases, and the demand for equity instruments (which are riskier and pay return, which is not fixed) reduces. This results in decrease in the prices of equity instruments. The above para is from Indigo learn material Please explain how an increase in interest rates leads to an increase in demand for debt instruments?

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Woah, Thank you so much!!

Rithani R.C

CA Inter

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282

Financial decisions capital structure

answered on 08-Jun-21 06:38

Answer for illustration 6 given in indigo learn is different from study material but we can write answers given in indigo learn for exam as it is very simple

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Thank you mam

Miradevi S

CA Final

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19

361

Banking company

answered on 04-Jun-21 07:43

Statutory liquidity ratio applicable for may 2021

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18%

sabarish s

CA Inter

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265

Final Accounts

answered on 05-Jun-21 10:06

Is the solution given is wrong? Because of 5%of â?¹1400000 instead of 5%of â?¹1500000

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Provision = (Trade receivables - Bad debts) x Provision rate = (15,00,000 - 1,00,000) x 5% = 70,000

Gopal Garg

CFA L1

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Stat time series. 96th question

answered on 04-Jun-21 09:13

96 th question explanation

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c. Less than 10%. Real wages are wages adjusted for inflation. Here, we have nominal wage index of 120. And price index of 110 after change. Dividing wage index by price index and multiplying by 100, we get 109.0909...thus, 9.1% increase in real wages

MATURU HAMSA GAYATRI

CA Final

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Income from house property

answered on 04-Jun-21 07:44

Sir in IL material illustration 7, is interest should be divided between both self occupied and let out properties? But u took total interest for only let out property sir. Plzz clarify this doubt sir

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Ha yes sir I got it yesterday I did small calculation mistake. Thank u so much sir

Likhitha Sivani

CA Inter

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insurance claim for loss

answered on 04-Jun-21 09:31

Is it compulsory to use Memorandum trading a/c to compute value of goods before fire(closing stock), or can we use any method(using statement of valuation of closing stock) to compute closing stock. if so, how to know which method is appropriate?

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Not compulosry. Statement can also be used. But Trading A/c is preferred as chances of errors are less. Happy studying!

ALDRIN G

CA Inter

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capital gains

answered on 04-Jun-21 08:09

If an immovable property (house property) was bought and sold as per below, what should be taken as cost of acquisition for the purpose of computing capital gains. Agreement for sale - 70 lacs in June 2014 Stamp duty value - 60 lacs in Sept 2014 Entire sale consideration of 70 lacs paid through bank RTGS transfer as per sale agreement. Property sold for 85 lacs in June 2020 (The value in sale agreement and sale deed/stamp duty value are same at 85 lacs). Question is whether the cost of acquisition is Rs. 60 lacs or 70 lacs in the hands of seller as the seller has paid Rs 70 as per sale agreement at the time of purchase and that is the actual consideration paid though the stamp duty value of 60 lacs at the time of acquisition.

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Indexation benefit must be given for cost of acquisition because it is long term capital asset. As per the information given by you, because you paid Rs. 70 laks in June 2014, you have to index 70 laks.

John Selvaraj

CA Inter

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298

National income

answered on 03-Jun-21 20:14

In the given graph why does line 1 start from origin and line 2 started from y axis? Although line 1 has C in it.. why does it start from orgin? Please reply... ASAP...!!

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Soo consumption(C) always starts from above zero level

Sai Teja

CA Final

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344

National income

answered on 03-Jun-21 23:30

In the given graph why does line 1 start from origin and line 2 started from y axis? Although line 1 has C in it.. why does it start from orgin? Please reply... ASAP...!!

latest answer

Because there is autonomous consumption even in the zero level of income that's the reason why consumption line never starts from zero

Sai Teja

CA Final

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