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Vocabulary: Meaning from Context: Mastery Test

Read the paragraph and answer the question:

"You are losing buying power by having idle cash in a regular savings account when the maximum interest paid on such accounts is less than the rate of inflation."

What does "idle" mean as used in this paragraph?

A. Loafing or moving slowly
B. Being inactive or unused
C. Not occupied with a job



Answer :

GinnyAnswer

Final answer:

In the context of the paragraph, 'idle' means being inactive or unused cash, leading to a loss in buying power due to inflation.


Explanation:

In the context of the paragraph provided, idle means being inactive or unused. When cash is described as idle, it refers to the money not being utilized or invested, leading to a loss in buying power due to inflation.

For example, storing money in a regular savings account with low interest rates while inflation is high can be considered having idle cash which diminishes its value over time.

It is essential to ensure your money is actively working for you to combat the effects of inflation and maintain its purchasing power.


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