_____ inventories also provide a hedge against inflation because the value of the goods/parts held in inventory remains the same compared to the buying power of local currency.
A)High-tech
B)Low-tech
C)High
D)Low
E)None of the above

Question

Quizplus · Accepted Answer

High inventories can serve as a hedge against inflation because as prices rise, the value of the inventory does too, potentially offsetting the reduced purchasing power of money.

_____ Inventories Also Provide a Hedge Against Inflation Because the Value