Why is it a bad idea to simply hide money in a safe place as a way to save? A. Money disintegrates over time. B. The money will
gain value over time through deflation. C. The money will lose value over time through inflation. D. You're likely to forget where the money is hidden.
according to answers.com the reason why it is a bad idea to hide money is because over a period of time, the cost of goods goes up (inflation) The money that you hid will not buy as much, so it is worth less. Money invested can grow over time. you can also have hidden money stolen or lost.
C. The money will lose value over time through inflation.
Explanation:
Saving money in safes to accumulate in the future is not a good idea because money loses value over time due to inflation. The best strategy in this case is to look for a suitable application to your profile so that your money has an income that at least recovers the inflationary loss.
For example, if today with $ 100 dollars you buy 2 shirts of $ 50, in the future with the same $ 100 you will no longer be able to buy both two shirts, as their price will increase over time. So you should look for an application and save your money with income so that your purchasing power remains the same or higher.
