Question

Each sentence given below has a blank. Choose the most appropriate word from the options that best fits the context of the sentence. In the absence of basic financial awareness, individuals may underestimate the long-term impact of inflation, which steadily reduces the ______ of money over time.

Q: Answer-Each sentence given below has a blank. Choose the most appropriate word from the options that best f...

Inflation refers to the rise in prices, which means money can buy fewer goods and services over time. Therefore, inflation reduces purchasing power. Option meanings Mobility ability to move Durability ability to last long Credibility trustworthiness Purchasing power amount of goodsservices money can buy Correct Circulation movement of money in the economy Hence, purchasing power is the correct answer.