Financial Snap

 What are fed interest rates and how does it impact us? The interest rate that banks charge each other for borrowing and lending is known as the federal funds rate, and it currently varies between 3% and 3.25%. Additionally, there is a cascading effect: Banks offset the increased borrowing costs by increasing the interest rates on their consumer loan products. In other words, the interest rate at which commercial banks in the United States make overnight loans to one another is known as the Fed Funds Rate. At Federal Reserve Banks, every commercial bank must keep a reserve; if a bank has more deposits than it needs, it can lend to another bank with a shortfall. How does Fed interest rates impact us? How are we affected by the Fed rate? The Federal Reserve typically raises interest rates to slow the economy and reduce inflation when inflation is too high. In order to boost the economy and raise inflation, the Federal Reserve typically reduces inter...

GST is known as the Goods and Services Tax. It is an indirect tax which has replaced many indirect taxes in India such as the excise duty, VAT, services tax, etc. The Goods and Service Tax Act was passed in the Parliament on 29th March 2017 and came into effect on 1st July 2017. In other words, Goods and Service Tax (GST)  is levied on the supply of goods and services. Goods and Services Tax Law in India is a  comprehensive, multi-stage, destination-based tax  that is levied on every  value addition.  GST is a single domestic indirect tax law for the entire country. Before the Goods and Services Tax could be introduced, the structure of indirect tax levy in India was as follows: Under the GST regime, the tax is levied at every point of sale. In the case of intra-state sales, Central GST and State GST are charged. All the inter-state sales are chargeable to the Integrated GST. Now, let us understand the definition of Goods and Service Tax, as mentioned above, in ...