Which of the Following Individuals Is Not Hurt by Inflation

question 78

Multiple Choice

Which of the following individuals is not hurt by inflation?

• A)Akshay, who borrowed $1,000 from a friend and agreed to pay the same amount one year later, but during the year, prices increased by 10 percent.
• B)Vjiay, who lent his friend $1,000 and agreed to accept repayment of the same amount one year later, but during the year, prices increased by 10 percent.
• C)Randall, who lives on a fixed income of $800 per month.
• D)Asuza, who keeps her savings in the form of cash in a safe at home.

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Definitions:

Shareholder's Wealth

The total value of an individual's or entity's equity in a firm, essentially reflecting the market value of their shares.

Institutional Investors

Entities such as pension funds, insurance companies, and mutual funds that invest large amounts of money in securities, real estate, and other investment assets.

Syndicated Offerings

A financing arrangement where multiple lenders team up to provide a borrower with a large loan, often used in big and complex projects.

Marketing Functions

Various activities or roles that are performed in the process of marketing goods and services, including product promotion, distribution, pricing, and customer service.