Write T if the statement is correct, and F if the statement is incorrect and write the word that makes it false
1. Devaluation is the increase in the value of peso compared to foreign currency.
2. Debtors benefit from inflation.
3. The monopoly and cartel always want price increase.
4. Banking institution should give high interest rate to the depositors to avoid the effects of inflation.
5. A person who has a fixed income benefits from inflation.
6. Borrowers are individuals who give loans to others.
7. Speculator benefit from price increase.
8. Workers demand higher salary because of inflation.
9. People are not interested to save their money in the bank because of inflation.
10. Inflation is a good sign of economic progress if it is controlled.
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Answer:
1. F – Devaluation is the decrease in the value of peso compared to foreign currency.
2. T
3. T
4. T
5. F – A person who has a fixed income is negatively affected by inflation.
6. F – Borrowers are individuals who receive loans from others.
7. T
8. T
9. F – People are interested to save their money in the bank because of inflation.
10.F – Inflation is not necessarily a good sign of economic progress even if it is controlled.
Explanation:
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