Finance Management

In: Business and Management

Submitted By sumer
Words 252
Pages 2
-+.

]

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2Assess the Impact of Fiscal and Monitory policy onbusiness organization their activities:
Fiscal Policy is one of the government policy in which government use his expenditure and taxes
MONETARY POLICY :- Government supply the money into the economy to bring the economy back into the good condition.
In case if money is supply has been increased.more money into the system.more excess too much surplus money into the system.this will decrease lower the interest rate.And if the interest rate is low less minimised the people.will keep money in their pocket ,in house expend else where spend else where.where spend money will be in need to cost the product.
==============
EXAMPLE :-
Companies
If they did not enough money in their pockets.
Can not start new projects.
If the interest rate is low then business or organization institutions they will not put money into bank to low interest rate they will rather use the money else where to produce more good and services.
Here we can use to complex formula to find to how much money government should put into the system.
OPPSITE TRUE :- As the example of those people who are working in the Sainsbury if some branches will close then people will unemployed so its as the opposite true as the circle of the economy.
=========
These policies will have effect on
Production-sale-profit
Size of economy
Redundancies
Import export
Business behaviur.
Consumer behaviur
Prospersity to save-0 interest rate=lower propensity to save willingness to…...

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