​The Primary Cause of Inflation Is

question 397

Multiple Choice

​The primary cause of inflation is

• A)​growth in the quantity of money.
• B)​variability in relative prices.
• C)inter-bank lending.
• D)reduced velocity of money.

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Definitions:

LIFO

Last In, First Out, an inventory valuation method where the last items added to inventory are assumed to be the first ones removed, affecting cost of goods sold and inventory value.

Lower-Of-Cost-Or-Market

An accounting principle stating that inventory should be recorded at the lower of its historical cost or its current market price.

LIFO

Last In, First Out, a stock valuation approach that accounts for the most newly manufactured goods as being sold before all others.

Lower-Of-Cost-Or-Market

A rule in accounting that dictates inventory should be recorded at whichever is less between its original purchase cost and its present market value.