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AMITY BUSINESS
               SCHOOL(AUR)
        SUB: ECONOMIES ANALYSIS
            DATE:18/11/2011


                            PRESENTED BY:
SUBMITTED TO:          GAURAV KUMAR SHIVHARE
MAMTA PANKAJ JAIN        MBA GENERAL 1ST SEM
ABS(AUR)
YIELD OF SGL TRANS.
   YEARS              IN T BILL       WPI

APRIL 2006-07         5.5176           5

  2007-08             7.3701          6.2

  2008-09             6.9923          7.9

  2009-10             3.1159          1.2

  2010-11             3.9533          10.9

  2011-12             7.5332          9.7
YIELD OF SGL TRANS. IN T BILL                   WPI


         12


        10


         8

PERCENTAGE
         6




                                                                                     10.9




                                                                                                     9.7
                                                                                            7.5332
                             7.3701




                                                      7.9
         4
                                             6.9923
                                      6.2
               5.5176




                                                                            3.9533
                        5




         2

                                                             3.1159
         0                                                            1.2
               APRIL        2007-08         2008-09         2009-10         2010-11         2011-12
              2006-07
                                                       YEARS
YIELD OF SGL TRANS. IN T BILL                  WPI


             12
                                                               10.9

             10                                                               9.7
PERCENTAGE




                                            7.9
             8
                                7.3701                                    7.5332
                                          6.9923
             6                   6.2
                       5
                    5.5176

             4                                                3.9533
                                                    3.1159

             2                                        1.2


             0
                  APRIL 2006-   2007-08   2008-09   2009-10   2010-11     2011-12
                      07

                                              YEARS
NOMINAL INTEREST
                             RATE          INFLATION RATE



NOMINAL INTEREST RATE          1


   INFLATION RATE         0.407084944            1


   COEFFICIENT OF
    CORRELATION                             0.407084944
 The coefficient of correlation of NOMINAL INTEREST
  RATE and INFLATION is 0.407.
 Means r=0.407, that show the positive moderate
  correlation between them.
 The pattern of both variable is same as one increase
  with other and also decrease with other.
 This modification is done in treasury bill by central
  bank during inflation.
 To control inflation through monetory policy,
  central bank sell the securities to public through
  commercial bank.
 This process reduce the deposits available to
  commercial bank and thus reduce credit creation
  capacity of banks and flow of credit to public.

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Gaurav ppt assign 3

  • 1. AMITY BUSINESS SCHOOL(AUR) SUB: ECONOMIES ANALYSIS DATE:18/11/2011 PRESENTED BY: SUBMITTED TO: GAURAV KUMAR SHIVHARE MAMTA PANKAJ JAIN MBA GENERAL 1ST SEM ABS(AUR)
  • 2. YIELD OF SGL TRANS. YEARS IN T BILL WPI APRIL 2006-07 5.5176 5 2007-08 7.3701 6.2 2008-09 6.9923 7.9 2009-10 3.1159 1.2 2010-11 3.9533 10.9 2011-12 7.5332 9.7
  • 3. YIELD OF SGL TRANS. IN T BILL WPI 12 10 8 PERCENTAGE 6 10.9 9.7 7.5332 7.3701 7.9 4 6.9923 6.2 5.5176 3.9533 5 2 3.1159 0 1.2 APRIL 2007-08 2008-09 2009-10 2010-11 2011-12 2006-07 YEARS
  • 4. YIELD OF SGL TRANS. IN T BILL WPI 12 10.9 10 9.7 PERCENTAGE 7.9 8 7.3701 7.5332 6.9923 6 6.2 5 5.5176 4 3.9533 3.1159 2 1.2 0 APRIL 2006- 2007-08 2008-09 2009-10 2010-11 2011-12 07 YEARS
  • 5. NOMINAL INTEREST RATE INFLATION RATE NOMINAL INTEREST RATE 1 INFLATION RATE 0.407084944 1 COEFFICIENT OF CORRELATION 0.407084944
  • 6.  The coefficient of correlation of NOMINAL INTEREST RATE and INFLATION is 0.407.  Means r=0.407, that show the positive moderate correlation between them.  The pattern of both variable is same as one increase with other and also decrease with other.
  • 7.  This modification is done in treasury bill by central bank during inflation.  To control inflation through monetory policy, central bank sell the securities to public through commercial bank.  This process reduce the deposits available to commercial bank and thus reduce credit creation capacity of banks and flow of credit to public.