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________ is when the value of a unit of currency decreases, so it is worth less than before

Question 1 options:

liquidity


inflation


equity


interest rates

User Shee
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The correct answer is inflation.

Inflation refers to the general increase in prices of goods and services in an economy, resulting in the decrease in the purchasing power of money. Inflation occurs when the supply of money in the economy increases at a faster rate than the production of goods and services. As a result, the value of currency decreases, and it can buy fewer goods and services than before.

Option (A) "liquidity" refers to the ability of an asset to be easily converted into cash without causing a significant change in its price. Option (C) "equity" refers to the ownership interest of shareholders in a company. Option (D) "interest rates" refers to the cost of borrowing or the return on savings or investments.
User Arial
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