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प्रश्न
Observe the relationship of the first pair of words and complete the second pair.
During inflation the debtors gain and ______ lose.
पर्याय
Creditors
Producers
Businessman
Shopkeeper
उत्तर
During inflation the debtors gain and creditors lose.
Explanation:
During inflation, debtors gain but creditors lose. When prices rise, the value of money (i.e., the purchasing power of money) falls. Though the debtors return the same amount of money, they pay less in terms of goods and services. The purchasing power of money was high when they had borrowed but low at the time of return. Thus, inflation helps the debtors. On the other hand, creditors stand to lose. Although they get back the same amount of money which they lent, they get less in terms of goods and services. Thus, there is a transfer of wealth from creditors to debtors.
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संबंधित प्रश्न
Define inflation.
Explain its impact on the producers and salaried class.
Briefly explain three determinants of Cost-push inflation.
Can inflation lead to economic development? Give a reason for your answer.
Read the extract given below and answer the questions that follow:
|
ET Bureau, Aug 01, 2022 Food prices may not ease this fiscal deficit and can throw India’s monetary policy makers a tougher challenge in bringing down inflation and anchoring inflation expectation, Crisil said on Monday. The recent rise in food inflation is mainly supply shortages-led, driven by both global geopolitical conflicts and impact of local heat waves. Other factors such as rising input costs in agricultural production have played their part too. The surge in food prices is accompanied by high fuel and core inflation following the? Russia- Ukraine war, keeping inflation consistently above the Reserve Bank of India's upper target band of 6% for the past few months. “This has put monetary policy in a quandary and made it imperative for the central bank to look closely at factors pushing up food prices.” Crisil said, predicting overall CPI inflation at 6.8% and food inflation at 7% for the current fiscal. |
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- What is meant by inflation? 2
- How is creeping inflation different from waling inflation? 2
- Explain the impact of inflation on: 3
- Wage earners and salaried class
- The investors
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- What do you mean by division of labour? 2
- Explain any two advantages of division of labour. 3
- 'Labour as a factor of production differs from other factors of production.’ In this context explain any two features of labour. 2
The income of a person who carries the risk bearing function is called as ______.
Inflation means ______.
Identify the incorrect statement from the following:
Read the following statements - Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Inflation is a continuous rise in the general price level.
Reason (R): Inflation increases standard of living.
Which of the following statements are true and which are false? Give reasons.
- Inflation refers to a persistent upward movement of the general price level.
- Inflation results in higher level of unemployment.
- Purchasing power of money falls when price level rises.
- Creditors gain during inflation.
- Creeping inflation is regarded essential for economic growth.
