How does inflation affect money stored under a mattress? Options: A . &nbspIncreases its value B . &nbspDecreases its value C . &nbspNo effect D . &nbspReduces worth to zero

How does inflation affect money stored under a mattress?

Question

How does inflation affect money stored under a mattress?

Options:

A . Increases its value

B . Decreases its value

C . No effect

D . Reduces worth to zero

Answer: Option B
:
B
Inflation means an increase in price levels or decrease in the purchasing power. Hence it reduces the value of money stored under the mattress.

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