n NISM Certifications
XVII NISM Series XVII
Medium

Inflation reduces the purchasing power of money over time, making goods and services more expensive.

Practice question from NISM Series XVII- Retirement Adviser Mock Test 4 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. It reduces the purchasing power of money

    Correct answer

  2. B

    It increases the value of money in the future

  3. C

    It leads to appreciation in the purchasing power of money

  4. D

    It decreases the current value of money

Why this is the answer

Inflation erodes how much can be bought with a fixed amount of money.

Test yourself for real

Take a full NISM Series XVII mock test.

Same duration, same weighting, same difficulty distribution as the real exam — with explanations on every question.