Quote:
Originally Posted by urazakhan
i've recently done my blood tests.......and i am clear........my chest x-rays are also clear.........i've a hole in my heart since birth..........llaken ab wo na hone k brabar ha........so i am not taking any meds for more than 14 years.......i was worried is se masla to nae hoga......its not like i am joining the army.......i am perfectly well physically...............any guides
sehar i think atif is right....discount rate and inflation are inversely proportional....i might be wrong.........but i think inflation occurs when value of certain currency depreciates against any other curency suppose dollar.....and it happens when supply of money increases and its demand decreases.so when sbp will increase the discount rate on banks, in turn banks will also increase the interest rates to public so lesser people will borrow.circulation of money will decrease and eventually its demand will increase hence money will appreciate and inflation will be converted into deflation.........
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@uzara khan: no problem in medical test of bank they will just take test of ur physical test,blood test to ensure that u dont have viral transmitable disesae... so need to worry about it
@all other confusing the discount rate and inflastion rate :
yar y u ppl confusing these simple concept,,AS and AD main as such jane ki zroorat nahi hai yar..look discount rate wo hai ho commercial pe charge kia jata hai jab wo govt se koi short term security borrow kren so in pakistan there are T bills,PIB and sakook are traded ab SBP discount rate tbi km offer karta hai jab un ko ziada money ki zroort hoti hai market se... km discount rate pe ziada banks wo borrow kren ge.. ab obvious c bat hai k SBP have to pay back that money to those banks with higher interst and interst rate high hone se inflation increase hoga......
for example UBL borrow Tbills from SBP on discount rate of 9 (90 rupee)
after maturity of 3 months SBP will give back to UBL with intrest rate of suppose 10 (110) so as the difernce between discount rate and interst rate increases inflation rate also increases..
concusion is there is direclty inverse relation between discount rate and intrest rate..