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प्रश्न
Identity the correct statement from the following:
विकल्प
Debtors gain during inflation
Creditors lose during inflation
Both Debtors gain during inflation and Creditors lose during inflation.
Neither Debtors gain during inflation and Creditors lose during inflation.
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उत्तर
Both Debtors gain during inflation and Creditors lose during inflation.
Explanation:
- Debtors gain during inflation: This is correct because inflation decreases the real value of money over time. Debtors repay their loans with money that is worth less than when they initially borrowed it.
- Creditors lose during inflation: This is also correct because the money they receive back from debtors has less purchasing power than the money they originally lent.
संबंधित प्रश्न
Answer the following question in one or two sentences.
Explain the term deficit Financing.
The debt which yields income to the government is called as ______.
Explain how taxes can bring about equality in income distribution.
Examine any three adverse or evil effects of inflation on production.
______ are worst affected during the period of inflation.
Observe the relationship of the first pair of words and complete the second pair.
During inflation the debtors gain.
During inflation the ______ lose.
Purchasing power of money falls when ______.
State running inflation impact on fixed income groups.
Mention the effect of inflation on the value of money.
State the effect of inflation on creditors.
Why do producers gain in the short run during inflation?
Discuss the effects of inflation on production.
How does inflation affect the following?
Debtors and creditors
How does inflation affect the following?
Farmers
Which section of society gains due to inflation? Why?
