Someone Would Be Less Hurt by an Unexpectedly Higher Inflation

question 58

Multiple Choice

Someone would be less hurt by an unexpectedly higher inflation rate if

• A)they held much currency and owned few bonds.
• B)they held much currency and owned many bonds.
• C)they held little currency and owned few bonds.
• D)they held little currency and owned many bonds.

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Definitions:

Scienter

A legal term that refers to the knowledge of the wrongful nature of one's actions, especially in fraud cases.

Rule 10b-5

A regulation under the Securities Exchange Act of 1934 that prohibits fraud, misrepresentation, and deceit in the trading of securities.

Civilly Liable

A term referring to the responsibility of a person to compensate for losses or damages caused by their actions in a civil lawsuit.

Potential Liability

Potential liability refers to the possibility that a person or entity may be held legally responsible for actions or consequences in the future.