CIPS Exam A6 Topic 1 Question 53 Discussion

Actual exam question for CIPS's A6 exam

Question #: 53
Topic #: 1

[All A6 Questions]

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

AToo little money chasing too many goods

BToo much money chasing too few goods

CToo little money chasing too few goods

DToo much money chasing too many goods.

Show Suggested Answer

Suggested Answer: A

by Felicitas at Jun 02, 2024, 03:56 AM

Limited Time Offer

25%

Off

Get Premium A6 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Nan

5 months ago

B has got to be the correct answer. Inflation is all about that supply and demand imbalance, right?

upvoted 0 times

Earnestine

5 months ago

Yeah, too much money chasing too few goods leads to inflation.

upvoted 0 times

...

Claribel

5 months ago

I think B is the correct answer too. It's all about supply and demand.

upvoted 0 times

...

Loise

5 months ago

Haha, option D sounds like a party! Too much money and too many goods - where do I sign up for that?

upvoted 0 times

Alaine

5 months ago

Haha, option D sounds like a party! Too much money and too many goods - where do I sign up for that?

upvoted 0 times

...

Carlota

5 months ago

D) Too much money chasing too many goods.

upvoted 0 times

...

Avery

5 months ago

C) Too little money chasing too few goods

upvoted 0 times

...

Shawnee

5 months ago

B) Too much money chasing too few goods

upvoted 0 times

...

Deane

5 months ago

A) Too little money chasing too many goods

upvoted 0 times

...

Belen

6 months ago

I'm going with B as well. This is a classic economic concept that we've all learned about in our classes.

upvoted 0 times

...

Tambra

6 months ago

Option B seems like the obvious choice here. Too much money chasing too few goods is textbook inflation in my opinion.

upvoted 0 times

Dorothy

5 months ago

I think option B is the best description of inflation. It just makes sense that too much money chasing too few goods would cause prices to rise.

upvoted 0 times

...

Glory

5 months ago

Inflation can definitely be tricky to understand, but I think option B makes the most sense.

upvoted 0 times

...

Lemuel

5 months ago

I think option B is the best description of inflation. It just makes sense that too much money chasing too few goods would lead to inflation.

upvoted 0 times

...

Reed

6 months ago

Inflation can definitely be a tricky concept to understand, but I think option B makes the most sense.

upvoted 0 times

...

Micheline

6 months ago

I agree, option B is the correct choice. It's all about too much money chasing too few goods.

upvoted 0 times

...

Pamela

6 months ago

I agree, option B is the correct choice. It's all about too much money chasing too few goods.

upvoted 0 times

...

Gerri

6 months ago

I agree with Rodney, because when there is too much money in the economy, prices tend to rise.

upvoted 0 times

...

Rodney

6 months ago

I think the answer is B) Too much money chasing too few goods.

upvoted 0 times

...