Why should you avoid holding cash during periods of high inflation?
A) The cash loses value as prices keep rising.
B) You want to avoid making any interest on the money.
C) Banks become unsafe during periods of high inflation.
D) You want to ensure that the money does not lose value.
Correct Answer:
Verified
Q84: Hedging against inflation means:
A)making oneself knowledgeable about
Q85: Shoe-leather costs of inflation are the costs:
A)incurred
Q86: The menu costs of inflation are the:
A)lost
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Q90: A savvy investor seeks:
A)inflation-indexation clauses.
B)periods of high
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Q92: Even if inflation exists, your purchasing power
Q93: If there is deflation of 2% in
Q94: Suppose the basket of goods that you
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