【每日一练】ACCA F1（June 2014）

Please use the space provided on the inside cover of the Candidate Answer Booklet to indicate your chosen answer to each multiple choice question.

In an economic environment of high price inflation, those who owe money will gain and those who are owed money will lose.
Is this statement true or false?
A True
B False

Answer：

A

Where price inflation is high the value of money reduces consistently over time. Those who owe money (debtors) therefore pay back less capital in real terms, and interest rates seldom adjust adequately to compensate for this.

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