CIPS Exam A6 Topic 5 Question 69 Discussion

Actual exam question for CIPS's A6 exam

Question #: 69
Topic #: 5

[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 Carolann at Jan 14, 2025, 11:45 AM

Limited Time Offer

25%

Off

Get Premium A6 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Viola

9 days ago

This is a trick question! The answer is clearly B) - everyone knows that's what inflation is all about. Although, come to think of it, maybe the question itself is inflated. Har har!

upvoted 0 times

...

Emelda

29 days ago

I'm not sure, but I think it's either B or D. Can someone explain why it might be D) Too much money chasing too many goods?

upvoted 0 times

...

Jospeh

1 months ago

I agree with Alita, because when there's too much money in the economy, prices tend to rise.

upvoted 0 times

...

1 months ago

B) Too much money chasing too few goods - That's the classic definition of inflation, isn't it? Classic Econ 101 stuff.

upvoted 0 times

Katie

19 days ago

C) Too little money chasing too few goods - That doesn't sound like inflation.

upvoted 0 times

...

Micheline

25 days ago

B) Too much money chasing too few goods - Yes, that's the classic definition of inflation.

upvoted 0 times

...

Oliva

1 months ago

A) Too little money chasing too many goods - That's not the definition of inflation.

upvoted 0 times

...

Alita

1 months ago

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

upvoted 0 times

...