The Main Reason That Savers Must Assess the Impact of Inflation

question 60

Multiple Choice

The main reason that savers must assess the impact of inflation on returns is

• A)an increase in inflation will lower the nominal return on an asset.
• B)changes in the value of money will affect the real value of returns.
• C)inflation has a larger impact on the returns on luxury assets than on the returns on necessity assets.
• D)real after-tax returns generally rise during periods of inflation.

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Definitions:

Visual Inspections

This process involves examining objects, systems, or environments directly with the eyes, typically as a part of quality control or maintenance.

Mass Production

A method of producing goods in large quantities at low cost per unit, often using assembly line techniques.

Benchmarking

Process of determining how well other companies perform business functions or tasks.

Quality Control

Measuring output against established quality standards.