Write a eassay on relation between banking and infiation
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After sharing my study experience in earlier article, decided to write a fresh article on topic which is very widespread and imperative for Commerce field students, by using my own familiarity to some extent and gathering essential information from reliable source.
Every commerce student is well versed with commerce related knowledge in depth, like Finance field, Taxation, Banking, commercial & legal laws etc, its inclusive of familiarity regarding banking, inflation rates and varying interest rates too.
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The relationship between banking system and inflation is reverse which helps to stabilize the economy by controlling money demand and supply. ... High interest rate leads to reduce the disposable income which contracts the money supply in the economy. The inflation and rate of interest are inversely correlated.
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