Question

    What does the economic term 'Inflation' refer to?**

    A Short-term loans Correct Answer Incorrect Answer
    B Year-end financial statements Correct Answer Incorrect Answer
    C Persistent rise in general price levels Correct Answer Incorrect Answer
    D Short-term borrowing rate by RBI Correct Answer Incorrect Answer

    Solution

    Inflation is defined as a sustained increase in the general price level of goods and services in an economy over a period of time. It reflects a decrease in the purchasing power per unit of money—a loss of real value in the internal medium of exchange and unit of account in the economy.

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