Question

true or false. If false explain.

1. Hyperinflation causes lose of ability to move cash.

2. The measure of effectiveness and efficiency of resources is searched by finance.

3. The main objective of finance is to determine future decisions that must be taken.

Answer 1

_{1. False- Hyperinflation means price of goods & services rise over a defined period of time. It is will reduce the value of money. This is caused by increasing the amount of money in an economy , how it happens becuase goverment print more currency to pay thier spending. So it increase money supply which create price rise. So as mentioend in the question it will not create lose of ability to move cash but people need more cash to purchase same item than before.}

_{2. The question is not clearly mentioned if resources you mean by Human Resources or Material Resources. If question is related with measure of effectivesness and efficiency of human resource this is the searched by HR department. If related with material resources it is the duty of finance to measure the effectiveness and efficiency of with help of KPI reports. Father of Modern Management Peter Drucker said " Efficiency is doing things right; effectiveness is doing the right things"}

_{3. False- The main objective of finance is budgeting, cost , cash flow management, invetment decision &strategic planning. Determine future decision is only an element of finance not the main objective.}