7
QuizMultiple Choice

Financial Institutions and Banking — Quiz

Question 7 • Personal Finance

What is the definition of inflation?

Answer
A
when there are more products created than demand for them
B
when the interest rates on bank accounts rise
C
when there is an increase in the price of goods and services
D
when a company’s profits go up

Explanation

Inflation is a general increase in the prices of goods and services over time. When prices rise, the same amount of money buys less than before. The correct choice is “when there is an increase in the price of goods and services.”

AI-written and checked against the verified answer.

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