What Is the Determining Factor for Inflation to Occur

question 103

Multiple Choice

What is the determining factor for inflation to occur?

• A) Currency can no longer be exchanged for gold or silver.
• B) Value of the currency is based on the stock market.
• C) Currency is issued at a higher rate than the growth of the Gross Domestic Product.
• D) Prices are raised beyond what most people can afford.

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Definitions:

Sell Order

An instruction to a broker to sell a specified quantity of a security at the current market price or at a specific price.

Portfolio Value

The total worth of all the financial assets held by an individual or institution.

Heart Attack

A medical emergency characterized by the death of heart muscle due to the loss of blood supply.

Quarterly Dividend

A distribution of earnings to shareholders, done four times a year, each quarter, by a corporation.