During Periods of Hyperinflation, Which of the Following Is the Most

question 36

Multiple Choice

During periods of hyperinflation, which of the following is the most likely response of consumers?

• A) Save as much as possible.
• B) Spend money as fast as possible.
• C) Invest as much as possible.
• D) Lend money.

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Definitions:

Cash Amount

The total amount of money, in cash form, that is available or in consideration in a transaction.

Direct Method

A way of reporting cash flows from operating activities in the cash flow statement by listing major classes of gross cash receipts and payments.

Operating Activity

Activities that relate directly to the business’s primary operations, such as selling goods and providing services, not including investing or financing activities.