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Strategies for Professional Growth · Quiz 2 · 12 Apr 2026 · January 2026 term

Question 8: Consider the following statements: 1. Inflation increases…

Question 8

+1 markOne correct option

Consider the following statements: 1. Inflation increases the nominal value of assets such as real estate and gold. 2. Inflation causes a decline in the purchasing power of money over time. 3. Inflation leads to higher interest rates in the economy, making loans more expensive. 4. Even if the nominal amount of money remains the same, its ability to purchase goods and services decreases over time. Which of the statements above best explain why inflation is called a “silent killer” in personal finance?

  1. A

    1 and 2 only

  2. B

    2 only

  3. C

    2 and 4 only

  4. D

    1 and 3 only

Show answer

Correct answer

  • C

    2 and 4 only

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Question 8 of 22 in the IIT Madras BS Strategies for Professional Growth (SPG) Quiz 2 paper sat on 12 Apr 2026, in the January 2026 term (Strategies For Professional Indian Institute Of Technology, Madras - Bs In Data Science And Applications Growth 07 Apr 26). It carries 1 mark.

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