Assertion (A): During very high inflation, people try to hold goods rather than money.
Reason (R): Money then loses its purchasing power quickly, so it fails as a store of value.

Both A and R are true, and R is the correct explanation of A.Correct answerYour answerBoth A and R are true, but R is not the correct explanation of A.Correct answerYour answerA is true, but R is false.Correct answerYour answerA is false, but R is true.Correct answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer A

Correct answer: A

Goods keep their real value while money buys less each day.
R explains A.

Concept: Hyperinflation and money
Typical timeTypical: 100 s
Your timeYours: —

The rule this testsFunctions of money

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Assertion (A): During very high inflation, people try to hold goods rather than money.Reason (R): Money then loses its purchasing power quickly, so it fails as a store of value.

Explanation

Assertion (A): During very high inflation, people try to hold goods rather than money.
Reason (R): Money then loses its purchasing power quickly, so it fails as a store of value.