FREE IGNOU MMPF 001 Solved Assignment 2023-24 | Working Capital Management

FREE IGNOU MMPF 001 Solved Assignment 2023-24 | Working Capital Management Solved Assignment 2023-24: MMPF 001 Solved Assignment 2023-24 , MMPF 001 Assignment 2022 , FREE MMPF 001 Assignment , IGNOU Assignments 2023-24- Gandhi National Open University had recently uploaded the assignments of this session for Management for the year 2023-24. Students are recommended to download their Assignments from this web page itself. MMPF 001 Solved Assignment 2023-24 They don’t need to go anywhere else when everything regarding the Assignments are available during this text only.

FREE IGNOU MMPF 001 Solved Assignment 2023-24 | Working Capital Management

University IGNOU (Indira Gandhi National Open University)
Code MMPF 001
Title Working Capital Management
Language English
Session  July 2023-January 2024

 

MMPF 001 Solved Assignment 2023-24 : for college kids – MMPF 001 Working Capital Management Solved Assignment 2023-24, Students are advised that after successfully downloading their Assignments, you’ll find each and every course assignments of your downloaded. Candidates got to create separate assignment for the IGNOU Master Course, so as that it’s easy for Evaluators to ascertain your assignments.

IGNOU MMPF 001 Question Paper

Answer all questions in this assignment.

Q1. What do you understand by Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR)? How does a change in these ratios affect the availability of bank credit to business organisations? Discuss.

Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) are two important monetary policy tools used by central banks, including the Reserve Bank of India (RBI), to regulate the liquidity and credit conditions in the economy.

  1. Cash Reserve Ratio (CRR):
    • CRR is the percentage of a bank’s total deposits that it is required to keep with the central bank (like the RBI in India) in the form of reserves.
    • It is a crucial tool for controlling the money supply in the economy. When the central bank increases the CRR, it reduces the amount of money that banks can lend to the public, leading to a decrease in the money supply. Conversely, a decrease in CRR allows banks to lend more, leading to an increase in the money supply.
  2. Statutory Liquidity Ratio (SLR):
    • SLR is the percentage of a bank’s total deposits that it is required to maintain in the form of liquid assets such as government securities, gold, and other approved securities.
    • Similar to CRR, SLR is used to control the bank’s leverage and ensure the liquidity and solvency of the banking system. An increase in SLR restricts the bank’s ability to lend, reducing the money supply, while a decrease in SLR has the opposite effect.

Impact on the Availability of Bank Credit to Business Organizations:

  1. Increase in CRR or SLR:
    • When the central bank increases CRR or SLR, it reduces the amount of funds available with banks for lending.
    • This leads to a decrease in the overall money supply in the economy.
    • With reduced funds, banks may raise interest rates on loans, making credit more expensive for businesses.
    • The availability of credit to businesses decreases, leading to potential slowdowns in investment and economic activity.
  2. Decrease in CRR or SLR:
    • A decrease in CRR or SLR increases the funds available with banks for lending.
    • This leads to an increase in the overall money supply in the economy.
    • With more funds available, banks may lower interest rates on loans, making credit more affordable for businesses.
    • The availability of credit to businesses increases, promoting investment and economic growth.

In summary, changes in CRR and SLR directly impact the liquidity and lending capacity of banks, which, in turn, affect the availability and cost of credit for business organizations. These tools are crucial for central banks to manage inflation, economic growth, and overall monetary stability.

Q2. Discuss any two Sources of Short-term Finance, other than Bank Credit and Trade Credit, that are used by firms to meet their Working Capital needs.

Q3. Try to find out from any Small and Medium Enterprises (SMEs) how they manage their working capital effectively. Write a detail report on your findings.

Q4. Study the case on “Receivables Management In Tata Consultancy Services Limited”, given in unit 15 of this course. Answer the Questions given at the end of this case.

MMPF 001 Working Capital Management Solved Assignment 2023-24: Those students who had successfully submitted their Assignments to their allocated study centres can now check their Assignment Status. Alongside assignment status, they will also checkout their assignment marks & result. All this is often available in a web mode. After submitting the assignment, you’ll check you IGNOU Assignment Status only after 3-4 weeks. it’d take 40 days to declare. MMPF 001 Solved Assignment 2023-24

Also Check:

MMPB 004 Solved Assignment 2023-24

MMPF 001 Solved Assignment 2023-24

Those students who had successfully submitted their Assignments to their allocated study centres can now check their Assignment Status. Along with assignment status, they can also checkout their assignment marks & result.  MMPF 001 Solved Assignment 2023-24 All this is available in an online mode. After submitting the assignment, you can check you IGNOU Assignment Status only after 3-4 weeks. It might take 40 days to declare.

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