Who amongst the following benefits most from inflation :

Creditors
Debtors
Saving Bank Account Holders
Government Pensioners

The correct answer is (b), Debtors.

Inflation is a general increase in prices and fall in the purchasing value of money. When there is inflation, the value of money decreases, so it takes more money to buy the same goods and services. This benefits debtors because they can repay their debts with money that is worth less than the money they borrowed.

Creditors, on the other hand, are harmed by inflation because the value of their loans decreases. When there is inflation, the amount of money that a creditor is owed becomes worth less. This means that creditors may not be able to recover the full amount of money that they loaned.

Saving bank account holders are also harmed by inflation because the interest they earn on their savings is usually lower than the rate of inflation. This means that the purchasing power of their savings decreases over time.

Government pensioners are also harmed by inflation because the pensions they receive are usually not adjusted for inflation. This means that the purchasing power of their pensions decreases over time.

In conclusion, debtors benefit most from inflation because the value of their debts decreases. Creditors, saving bank account holders, and government pensioners are all harmed by inflation because the purchasing power of their money decreases.

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