B Com Exam > B Com Questions > What is the primary reason behind the seasona...
Start Learning for Free
What is the primary reason behind the seasonality of the Indian money market?
- a)Agricultural activities
- b)Stock market fluctuations
- c)Government policies
- d)Foreign exchange rates
Correct answer is option 'A'. Can you explain this answer?
| FREE This question is part of | Download PDF Attempt this Test |
Most Upvoted Answer
What is the primary reason behind the seasonality of the Indian money ...
The Indian money market experiences seasonality due to its agricultural-based economy, with higher demand for funds during busy agricultural seasons.
Free Test
FREE
| Start Free Test |
Community Answer
What is the primary reason behind the seasonality of the Indian money ...
The primary reason behind the seasonality of the Indian money market is **agricultural activities**.
**Agricultural Activities**
- India is primarily an agrarian economy, with a significant portion of its population engaged in agricultural activities.
- The demand for credit in rural areas tends to increase during the sowing and harvesting seasons when farmers require funds to purchase seeds, fertilizers, and other inputs.
- This increased demand for credit leads to a rise in interest rates in the money market during these periods.
- On the other hand, post-harvest seasons see a decrease in the demand for credit, resulting in a decrease in interest rates.
- The fluctuations in the demand for credit due to agricultural activities create seasonality in the Indian money market.
In conclusion, the seasonality of the Indian money market is primarily driven by the fluctuations in demand for credit arising from agricultural activities. Understanding this relationship is crucial for policymakers and market participants to anticipate and navigate the seasonal variations in interest rates and liquidity in the money market.
**Agricultural Activities**
- India is primarily an agrarian economy, with a significant portion of its population engaged in agricultural activities.
- The demand for credit in rural areas tends to increase during the sowing and harvesting seasons when farmers require funds to purchase seeds, fertilizers, and other inputs.
- This increased demand for credit leads to a rise in interest rates in the money market during these periods.
- On the other hand, post-harvest seasons see a decrease in the demand for credit, resulting in a decrease in interest rates.
- The fluctuations in the demand for credit due to agricultural activities create seasonality in the Indian money market.
In conclusion, the seasonality of the Indian money market is primarily driven by the fluctuations in demand for credit arising from agricultural activities. Understanding this relationship is crucial for policymakers and market participants to anticipate and navigate the seasonal variations in interest rates and liquidity in the money market.
|
Explore Courses for B Com exam
|
|
Similar B Com Doubts
What is the primary reason behind the seasonality of the Indian money market?a)Agricultural activitiesb)Stock market fluctuationsc)Government policiesd)Foreign exchange ratesCorrect answer is option 'A'. Can you explain this answer?
Question Description
What is the primary reason behind the seasonality of the Indian money market?a)Agricultural activitiesb)Stock market fluctuationsc)Government policiesd)Foreign exchange ratesCorrect answer is option 'A'. Can you explain this answer? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about What is the primary reason behind the seasonality of the Indian money market?a)Agricultural activitiesb)Stock market fluctuationsc)Government policiesd)Foreign exchange ratesCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What is the primary reason behind the seasonality of the Indian money market?a)Agricultural activitiesb)Stock market fluctuationsc)Government policiesd)Foreign exchange ratesCorrect answer is option 'A'. Can you explain this answer?.
What is the primary reason behind the seasonality of the Indian money market?a)Agricultural activitiesb)Stock market fluctuationsc)Government policiesd)Foreign exchange ratesCorrect answer is option 'A'. Can you explain this answer? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about What is the primary reason behind the seasonality of the Indian money market?a)Agricultural activitiesb)Stock market fluctuationsc)Government policiesd)Foreign exchange ratesCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What is the primary reason behind the seasonality of the Indian money market?a)Agricultural activitiesb)Stock market fluctuationsc)Government policiesd)Foreign exchange ratesCorrect answer is option 'A'. Can you explain this answer?.
Solutions for What is the primary reason behind the seasonality of the Indian money market?a)Agricultural activitiesb)Stock market fluctuationsc)Government policiesd)Foreign exchange ratesCorrect answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for B Com.
Download more important topics, notes, lectures and mock test series for B Com Exam by signing up for free.
Here you can find the meaning of What is the primary reason behind the seasonality of the Indian money market?a)Agricultural activitiesb)Stock market fluctuationsc)Government policiesd)Foreign exchange ratesCorrect answer is option 'A'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
What is the primary reason behind the seasonality of the Indian money market?a)Agricultural activitiesb)Stock market fluctuationsc)Government policiesd)Foreign exchange ratesCorrect answer is option 'A'. Can you explain this answer?, a detailed solution for What is the primary reason behind the seasonality of the Indian money market?a)Agricultural activitiesb)Stock market fluctuationsc)Government policiesd)Foreign exchange ratesCorrect answer is option 'A'. Can you explain this answer? has been provided alongside types of What is the primary reason behind the seasonality of the Indian money market?a)Agricultural activitiesb)Stock market fluctuationsc)Government policiesd)Foreign exchange ratesCorrect answer is option 'A'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice What is the primary reason behind the seasonality of the Indian money market?a)Agricultural activitiesb)Stock market fluctuationsc)Government policiesd)Foreign exchange ratesCorrect answer is option 'A'. Can you explain this answer? tests, examples and also practice B Com tests.
|
|
Explore Courses for B Com exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup