20
QuizMultiple Choice

Banking — Unit test

Question 20 • CHS Economics

When government intervention makes currency worthless, this condition is called

Answer
A
deflation.
B
hyperinflation.
C
cost-push inflation.
D
demand-pull inflation.

Explanation

Hyperinflation is an extremely rapid rise in prices that severely reduces a currency’s purchasing power, potentially making it nearly worthless. Deflation is a general fall in prices, while cost-push and demand-pull inflation describe causes of rising prices.

AI-written and checked against the verified answer.

Previous
Next