Finance Unbox-ED ($) - Grade 6-8 - Session 001 - Quiz 2

Select all the statements that are true

• Demand is the number of goods people want to purchase
• Demand is the number of goods people purchased
• Supply is the number of goods available for sale
• Supply is the number of goods that were sold

Low demand and high supply leads to high prices

• True
• False

High demand and low supply leads high prices

• True
• False

Inflation means an increase in prices of goods and services over a period of time

• True
• False

What is deflation?

• When prices increase over a period of time
• When prices decrease over a period of time
• When prices increase or decrease over a period of time
• When prices do not change

Alex bought a football for $20 last year but it cost him $21 this year

• This is inflation
• This is deflation
• This is hyperinflation
• None of the above

If prices increase the purchasing power of a currency increases or decreases?

• Increases
• Decreases

Low and stable inflation is a good thing for a country

• True
• False

Select the statement that is true

• Hyperinflation is a rapid increase in the prices of goods and services
• Hyperinflation is a good thing for a country
• Both of the above
• None of the above

Governments do not interfere with or try and control inflation

• True
• False