| Which of the following classes of people is/are generally benefited by inflation? |
| 1. Creditors |
| 2. Exporters |
| 3. Fixed income group |
| 4. Bond holders |
| 5. Pensioners |
| Select the correct answer using the codes given below: |
A) 1, 2 and 3 only
B) 4 and 5 only
C) 2 only
D) None of the above
Correct Answer: C
Solution :
[c] Inflation redistributes wealth from creditors to debtors i.e. lenders suffer and borrowers benefit out of inflation. Bond holders are people has lend money (to debtor) and received bond in return. So he is lender, he suffers. Fixed income group and pensioners are on the same boat and suffers.
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