Is this assumption true?

It may be more difficult to buy on a credit from supplier who locates in a country with a hyperinflation?

Is this assumption true?
A . No, because supplier’s bank will take risks from currency fluctuation
B . Yes, because thesupplier’s currency will lose its value overtime
C . Yes, because buyer has more advantage if they make payment in their own currency
D . No, because the higher the inflation rate, the stronger the supplier’s currency

View Answer

Answer: B

Explanation:

If the inflation rate is running high, then obtaining credit as a buyer is normally more difficult or expensive as money in the future will be worth less than money today.