1. Are the following statements about inflation correct? A. If a country’s industry increases its production

1. Are the following statements about inflation correct?
A. If a country’s industry increases its production, the amount of money in circulation will decrease, and the velocity of money will remain unchanged, causing a decrease in price levels.
B. If a country’s industry cannot increase its production, but the amount of money in circulation increases, price levels will rise.
1. Only A is correct.
2. Only B is correct.
3. Both statements are correct.
4. Both statements are incorrect.

2. Do the following statements about inflation hold true?
A. An increase in wages can be a cause of inflation.
B. The discovery of new natural resources can be a cause of inflation.
1. Only A is correct.
2. Only B is correct.
3. Both statements are correct.
4. Both statements are incorrect.

3. Are the following statements about inflation accurate?
A. A reduction in production costs cannot trigger inflation.
B. During a crisis, prices can both decrease and increase.
1. Only A is correct.
2. Only B is correct.
3. Both statements are correct.
4. Both statements are incorrect.

4. Are the following statements about stagflation true?
A. Stagflation involves rising prices, increased production, and increased unemployment.
B. Stagflation leads to a decrease in the standard of living.
1. Only A is correct.
2. Only B is correct.
3. Both statements are correct.
4. Both statements are incorrect.

5. What inflation rate is considered hyperinflation?
1. 20% per year.
2. 5% per year.
3. 10% per year.
4. 200% per year.

6. Increasing the velocity of money:
1. Leads to currency devaluation.
2. Leads to the appreciation of money.
3. Enhances government control over the money supply.
4. Is unrelated to banking activities.

7. Who benefits from inflation?
1. A young professional who took out a loan.
2. A bank that provided a loan.
3. A student living on a stipend.
4. A lawyer who lent money to a friend.

8. What happens to purchasing power during inflation?
1. It increases.
2. It does not decrease.
3. It remains unchanged.
4. It initially decreases and then increases.

9. A family took out a fixed-interest rate loan to purchase a car. With rising inflation, this family:
1. Will benefit.
2. Will lose out.
3. Will neither benefit nor lose out.
4. It cannot be determined definitively.

10. You earned a certain amount of money and placed it in a savings account. With inflation on the rise:
1. Your savings will lose value.
2. Your savings will grow.
3. Your savings will remain unchanged.
4. There is not enough information.

11. A student’s stipend payment is delayed. With rising inflation:
1. The student will benefit.
2. The student will lose out.
3. Both the government and the student will benefit.
4. Both the government and the student will lose out.

12. How much money is required in circulation if the velocity of money is 5?
1. Five times more than GDP.
2. Ten times more than GDP.
3. Five times less than GDP.
4. The money supply should always be equal to GDP.