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प्रश्न
State the effect of inflation on creditors.
उत्तर
- Inflation has a negative effect on creditors. When inflation develops, the money creditors receive back from borrowers has less purchasing power than when it was first lent.
- This means that the actual worth of money declines over time, and creditors essentially lose a portion of the value of their loans as a result of rising prices, because the money repaid to them buys less goods and services than it would have before inflation.
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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 ______.
Observe the relationship of the first pair of words and complete the second pair.
During inflation the debtors gain.
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Which of the following section of the society is most adversely affected by inflation?
Mention the effect of inflation on the value of money.
Why do producers gain in the short run during inflation?
How does inflation affect the distribution of income?
How does inflation affect the following?
Debtors and creditors
Which section of society gains due to inflation? Why?
Explain the impact of inflation on producers in the short run.
