CIPS Exam A6 Topic 3 Question 66 Discussion

Actual exam question for CIPS's A6 exam

Question #: 66
Topic #: 3

[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 Rhea at Oct 23, 2024, 04:43 AM

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Lynelle

1 months ago

Ha! Option D - 'Too much money chasing too many goods' - that sounds like a dream scenario, not inflation. B is clearly the right answer here.

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Ashley

1 months ago

Hmm, I was a bit unsure at first, but I think B is the way to go. Inflation is about the supply and demand of money, not just the amount of goods.

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Winifred

9 days ago

User 3: Yeah, that makes sense. B it is.

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Margarett

17 days ago

User 2: I agree, inflation is about too much money chasing too few goods.

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Audrie

21 days ago

User 1: I think B is the correct answer.

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Lauryn

1 months ago

I agree with Vilma, B is the correct answer. Inflation is all about having too much money in circulation compared to the available goods and services.

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Natalie

22 hours ago

I see your point, but I still think B is the best description of inflation.

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Sharen

16 days ago

I disagree, I think it's actually A. Too little money chasing too many goods.

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Remedios

21 days ago

Yeah, having too much money chasing too few goods can definitely lead to inflation.

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Nohemi

24 days ago

I think B is the correct answer too. It makes sense.

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Bette

1 months ago

I agree with Rodolfo, because when there is too much money in the economy and not enough goods, prices tend to rise.

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Vilma

2 months ago

Option B seems like the most accurate description of inflation. Too much money chasing too few goods is what causes prices to rise.

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Irma

25 days ago

It's important to understand the causes of inflation to make informed decisions about managing finances.

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Belen

1 months ago

That's right, inflation occurs when there is an imbalance between the supply of money and the supply of goods.

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Octavio

1 months ago

Yes, when there is too much money in the economy chasing too few goods, prices tend to rise.

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Vilma

1 months ago

I agree, option B does seem like the most accurate description of inflation.

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Rodolfo

2 months ago

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

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