What Is the Impact on a Checking Account's Purchasing Power

question 43

Multiple Choice

What is the impact on a checking account's purchasing power if it is earning 2% APY and inflation is 3% for the past year?

• A) Savings outpaced inflation by 1%
• B) Interest outpaced inflation by 1%
• C) Inflation outpaced savings by 1%
• D) The impact cannot be determined without knowing the balance

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Definitions:

Overly Positive Outcome Expectancies

An individual's unrealistic anticipation or belief that favorable results will occur, often without considering potential negative outcomes.

Immediate Determinants

Refers to factors that directly affect a situation or outcome, often in the context of health or social issues.

Lack of Coping Skills

The absence or inadequacy of mechanisms or strategies to effectively manage stress, difficulties, or emotional challenges.

Stress Among Clients

The experience of psychological strain or tension in clients, which may impact their health or engagement with services.