Vidyalelo
Commerce · Q741

Insurance

Graduate and Post Graduate · Commerce · question 741

Q741

With reference to Inflation, which of the following statement is not correct?

A.
Inflation leads to rise in prices
B.
Inflation means more purchasing power
Answer
C.
Inflation means erosion of money value
D.
Inflation plays havoc

Answer: Option B

Solution

Answer: Option B
Solution:
Inflation means more purchasing power. Purchasing power is important because, all else being equal, inflation decreases the amount of goods or services you would be able to purchase.