If two bags of rice were sold for ₦1,250 a month ago and two weeks later, the same amount was used to procure one bag. This simply means that the…

Question

If two bags of rice were sold for ₦1,250 a month ago and two weeks later, the same amount was used to procure one bag. This simply means that the value of money is

Answer 1

If two bags of rice were sold for ₦1,250 a month ago and two weeks later, the same amount was used to procure one bag. This simply means that the value of money is

constant
decreasing ✓
fluctuating
increasing

Explanation

Before, ₦1,250 bought two bags of rice. Now it only buys one bag. Your money buys less than before.

When prices rise, money loses value. This is called inflation. Each naira becomes worth less.

Decreasing value of money means rising prices for goods and services.

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