Q. Match the following historical events with the correct description of hyperinflation:
List I (Country/Event)List II (Description)
1. Zimbabwea. The most severe hyperinflation in modern history, with an inflation rate estimated at 79.6 billion percent per month.
2. Germany (Weimar Republic)b. Resulted in the government printing 100-trillion dollar notes and the eventual collapse of the currency.
3. Hungary (1946)c. Caused by war reparations and the passive resistance policy, leading to prices doubling every 49 hours.
In how many of the above rows is the given information correctly matched?
Answer: B
Notes:
Explanation:
- Pair 1: Zimbabwe (Correct) – Zimbabwe experienced a devastating period of hyperinflation in the late 2000s, with prices rising at astronomical rates. The government printed a 100-trillion dollar note, which eventually became worthless.
- Pair 2: Germany (Incorrect) – The hyperinflation in the Weimar Republic was severe, but the description “doubling every 49 hours” refers to Hungary’s hyperinflation. Germany’s inflation rate peaked with prices doubling every 3.7 days.
- Pair 3: Hungary (Correct) – Hungary’s post-WWII hyperinflation was the most extreme on record. Prices were doubling every 15.6 hours on average, with a peak of doubling every 49 hours. The inflation rate was estimated to be 41.9 quadrillion percent per month.
