CIPS Exam A6 Topic 3 Question 66 Discussion

Actual exam question for CIPS's A6 exam

Question #: 66
Topic #: 3

[All A6 Questions]

Which of the following best describes the term 'inflation'?

AToo little money chasing too many goods

BToo much money chasing too few goods

CToo little money chasing too few goods

DToo much money chasing too many goods.

Show Suggested Answer

Suggested Answer: A

by Rhea at Oct 23, 2024, 04:43 AM

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Lynelle

4 days ago

Ha! Option D - 'Too much money chasing too many goods' - that sounds like a dream scenario, not inflation. B is clearly the right answer here.

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Ashley

8 days ago

Hmm, I was a bit unsure at first, but I think B is the way to go. Inflation is about the supply and demand of money, not just the amount of goods.

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Lauryn

14 days ago

I agree with Vilma, B is the correct answer. Inflation is all about having too much money in circulation compared to the available goods and services.

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Bette

16 days ago

I agree with Rodolfo, because when there is too much money in the economy and not enough goods, prices tend to rise.

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Vilma

18 days ago

Option B seems like the most accurate description of inflation. Too much money chasing too few goods is what causes prices to rise.

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Belen

7 days ago

That's right, inflation occurs when there is an imbalance between the supply of money and the supply of goods.

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Octavio

8 days ago

Yes, when there is too much money in the economy chasing too few goods, prices tend to rise.

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Vilma

10 days ago

I agree, option B does seem like the most accurate description of inflation.

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Rodolfo

25 days ago

I think the answer is B) Too much money chasing too few goods.

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