CORPORATE VALUATION

Submitted toProf. Faisal M Memon

Kamle Ziyad 12

Kewal Sufyan 14

Munara Mohsin 30

Patel Tokir 32

Shaikh Yunus 46

“A policy employing the central banks control of the supply of money as an instrument for achieving the objectives of general economic policy is a monetary

policy.”-Prof. Harry Johnson

Control Inflation

Adequate Flow of Credit

Reduce Unemployment

Exchange Rate Stability

High Economic Growth

Repo Rate

Reverse Repo Rate

Bank Rate

Marginal Standing Facility (MSF)

Open Market Operations

CRR

SLR

Moral Suasion

Indicator Current rate

Inflation 6.00%

Bank rate 7% 

CRR 4.00%

SLR 21.00%

Repo rate 6.50% 

Reverse repo rate 6%

Marginal Standing facility rate 7.00%

Relationship Between Repo-rate and Inflation

FISCAL POLICY

IntroductionIn economics and political science, fiscal policy is the use of government revenue collection (mainly taxes) and expenditure(spending) to influence the economy.

Influences aggregate demand and the level of economic activity.Fiscal policy can be used to stabilize the economy over the course of the business cycle.Aggregate demand and the level of economic activity;Savings and investment in the economyThe distribution of incomeFiscal policy can be distinguished from monetary policy, in that fiscal policy deals with taxation and government spending and is often administered by an executive under laws of a legislature, whereas monetary policy deals with the money supply, lending rates and interest rates and is often administered by a central bank.

The effects of any fiscal policy are not the same for everyone. Could affect only the middle class. which is typically the largest economic group. In times of economic decline and rising taxation, it is this same group that may have to pay more taxes than the wealthier upper class.Similarly, when a government decides to adjust its spending, its policy may affect only a specific group of people. A decision to build a new bridge, for example, will give work and more income to hundreds of construction workers. A decision to spend money on building a new space shuttle, on the other hand, benefits only a small, specialized pool of experts, which would not do much to increase aggregate employment levels.

Who Does Fiscal Policy Affect