Inflation and Devaluation Quiz

How can practicing thriftiness help during inflation?

•    It reduces reliance on expensive credit.

•  It allows for saving for future investments.

•     It improves overall financial discipline.

    

•    All of the above.

When prices rise faster than income, what happens to purchasing power?

• Stays the same
• Increases significantly

• Fluctuates
• Decreases significantly

How can home gardening/backyard farming contribute to coping with inflation?

•   It reduces dependence on imported food items.

• It provides healthier and fresher food options.

• It saves money on grocery bills.

• All of the above.

What might be a disadvantage of relying on remittance from friends and relatives during inflation?

•    It can create dependence and reduce self-reliance.

•   It may not be a reliable and consistent source of income.

•  It can strain relationships due to expectations

• all options above

What is a dividend on shares in a credit union?

• Membership fee

• Loan interest

• Interest paid to depositors

• Excess earnings

How can upgrading skills potentially help during inflation and devaluation?

• It decreases living expenses

• It qualifies you for lower taxes.

• It leads to higher income opportunities.

• It reduces reliance on others.

How does a credit union reward its members for doing business with them?

• Patronage refund

• Higher fees

• Reduced interest rates

• Limited access to loans

According to the principles of credit unions, what is encouraged among members?

• Dependency on credit unions

• Unhealthy competition

• Self-discipline and self-reliance

• Ignoring financial problems

Which coping strategy involves finding additional sources of income?

• Prioritizing needs and wants

• Home gardening/backyard farming

• Seeking additional employment

• Practicing thrift

How do credit unions promote economic cooperation among people?

• By encouraging unhealthy competition

• By working together on economic ventures

• By excluding certain individuals

• By maximizing profits