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CIPS A6 Exam - Topic 3 Question 93 Discussion

Which of the following best describes the term 'inflation'?
A) Too little money chasing too many goods
B) Too much money chasing too few goods
C) Too little money chasing too few goods
D) Too much money chasing too many goods.

CIPS A6 Exam - Topic 3 Question 93 Discussion

Actual exam question for CIPS's A6 exam
Question #: 93
Topic #: 3
[All A6 Questions]

Which of the following best describes the term 'inflation'?

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Suggested Answer: A

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Raul
4 days ago
Exactly! Inflation is about excess money.
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Claribel
9 days ago
A is more about scarcity, not inflation.
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Ashlyn
14 days ago
I feel confused. What about A?
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Lynsey
19 days ago
Agreed! Too much money leads to higher prices.
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Raul
25 days ago
I think B is the best choice. It makes sense.
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Aliza
30 days ago
Definitely B, too much cash in the economy!
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Sheldon
1 month ago
I thought inflation was just rising prices, not this!
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Lucina
1 month ago
Wait, isn't it more complicated than just that?
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Rolf
2 months ago
Totally agree, it's all about the money supply.
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Francis
2 months ago
B is the right answer!
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Weldon
2 months ago
I’m confused because I thought inflation could also happen with too little money, but that doesn’t seem to fit any of these options.
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Catarina
2 months ago
I feel like I’ve seen a question like this before, and I think it was about too many goods leading to deflation instead.
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Royal
2 months ago
I remember discussing how inflation occurs when demand outstrips supply, which sounds like option B too, but I’m not completely sure.
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Twanna
2 months ago
I think inflation is about too much money in the economy, so I’m leaning towards option B.
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