Inflation · UPSC CDS/OTA · Question 10 of 30

Inflation – Question 10

Step-by-step solution. Inflation for UPSC CDS/OTA.

Topic
Inflation
Subject
General Studies
Difficulty
Medium
Solve Time
45–60 sec

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Q · InflationMedium · 45s

Which of the following can be an effect of hyperinflation? 1. Currency losing its value rapidly 2. Increase in real income 3. Erosion of savings Select the correct answer:

TopicInflation
Question Typemultiple choice
DifficultyMedium
Marking+1 / −0.33
Test Duration30 min

Step-by-Step Solution

The complete worked solution.

Every step explained — no skipped algebra.

Hyperinflation erodes currency value and savings. Real income usually declines, not increases.

Final Answer: Option C — 1 and 3 only
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Inflation Question 10 – UPSC CDS/OTA