Question

The statements given below are related to Shock Therapy. Choose the option that represents only the true statements:

1. The value of the Ruble, the Russian Currency, declined due to shock therapy.
2. Shock therapy strengthened Communism.
3. Shock therapy reduced the prices of goods.
4. Shock therapy destroyed the old system of social warfare. 

Choose the correct option:

Options

• (i), and (ii)

• (ii) and (iii)

• (i), (ii) and (iii)

• (i) and (iv)

Answer 1

(i) and (iv)

i. The value of the Ruble, the Russian Currency, declined due to shock therapy.

iv. Shock therapy destroyed the old system of social warfare.

Explanation:

The goal of shock treatment was to move away from communism and toward a capitalist economy, not to make communism stronger. Price changes may arise as a result of shock therapy, however price reductions are not usually the outcome.