The Direct Cause of the Hyperinflation That Plagued Zimbabwe in the 2000s

question 42

Multiple Choice

The direct cause of the hyperinflation that plagued Zimbabwe in the 2000s is ________.

• A)printing of too much money by the central bank
• B)government expenditures greatly above revenues
• C)outlawing of price increases on many commodities
• D)allowing the use of foreign currencies
• E)the issuance of a $100 billion bank note

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Definitions:

Held-to-Maturity

A classification for investment securities that a company intends and has the ability to hold until they mature.

IFRS

IFRS stands for International Financial Reporting Standards, which are a set of accounting standards developed by the International Accounting Standards Board (IASB) aiming at making global financial statements more comparable, transparent, and reliable.

Marketable Securities

Marketable securities are liquid financial instruments that can be quickly converted into cash at their current market prices.

Trading Securities

Financial assets that a firm holds for the purpose of selling them in the short term to profit from price changes.