Gabriela took out a five-year fixed-rate loan from a bank so that she could purchase a car. Over the life of the loan, the infla
tion rate was much higher than anticipated. Gabriela took out a five-year fixed-rate loan from a bank so that she could purchase a car. Over the life of the loan, the inflation rate was much higher than anticipated. How did inflation affect Gabriela or the bank?did inflation affect Gabriela or the bank? Inflation benefited the bank because the money Gabriela repaid the loan with was worth more than expected. Inflation benefited the bank because interest rates on fixed-rate loans rise at the same rate as the inflation rate. Inflation benefited Gabriela because she repaid the loan with money that was worth less than expected. Inflation benefited Gabriela because interest rates on fixed-rate loans are lowered when inflation rates rise.
Inflation benefited Gabriela because she repaid the loan with money that was worth less than expected.
Explanation:
Inflation rate measures the overall increase in the CPI. The CPI is the consumer price index that measures the average price of a basket of goods compared to the price of the same basket of goods during a base year.
As the inflation rate rises, the purchasing power of the currency lowers, therefore the currency is worth less. For example, if you could buy 10 t-shirts with $100 during 2018, and the inflation rate for 2019 was 10%, you will be able to buy only 9 t-shirts with $100. That means that the inflation has decreased the real value of the currency.
Answer: The answer is: "Inflation benefited Gabriela because she repaid the loan with money that was worth less than expected." I took the test. I hope this helps!
This is an effective listening skill, as Blake asked his manager to improve what he said, and he articulated key ideas, and he took key points from people doubling his work to improve accuracy and become a team.
A first line manager usually supervises non managerial workers or operators, e.g. foreman or shift boss. They are in charge of the operations of their departments or business units. In other words, they manage the people who perform the work of producing the organization´s goods or services.
Depending on the size of the organization, they respond to middle or executive management.
