Question

How are debenture holders affected during Inflation ?
a) they gain
b) they lose
c) they neither gain or lose
d) nothing can be said​

Answer 1

Answer:

$nothing \: can \: be \: said$

Explanation:

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Answer 2

Answer:

As profits increase, dividends on equities also increase at a faster rate than prices. But those who invest in debentures, securities, bonds, etc. which carry a fixed interest rate lose during inflation because they receive a fixed sum while the purchasing power is falling.