Remember: When there is too much money for the same goods, each note buys less. Things people need keep their worth better.
Read and answer
Read the story first, then answer.
The notes of QuillbyIn the made-up village of Quillby, Dani wove cloth and was paid ten notes each noon. A loaf of Mira's bread cost two notes, so ten notes bought five loaves. Most of the time, prices creep up a little each year, and that slow creep is called inflation. But then the mayor had big bills, so Quillby printed lots of new notes. Soon notes were everywhere, but there was not one extra loaf of bread. That night prices doubled: a loaf went from two notes to four. The next night it doubled again. Dani learned to spend her notes the moment she was paid, before prices jumped. Notes saved in a jar bought less every day. So Quillby went back to swapping cloth for flour and flour for bread, because things kept their worth better than notes. A time like this really happened in the 1920s in one country in Europe, where people carried bags and wheelbarrows of money to buy a loaf.
1
The table shows how many loaves ten notes buy each day. On which day do they buy exactly one?
Day 2Day 4Day 3
2
The price doubles every night. Fill in the gap for day 3: a loaf costs notes.
3
The bars show the cost of a loaf. Which pattern do they show?
Adding 2 each nightStaying the sameDoubling each night
4
Dani has 10 notes. On day 2 a loaf costs 4 notes. She can buy whole loaves.
5
Doubling a loaf's price three nights in a row makes a two-note loaf cost six notes.
TrueFalse
Order, match and think
6
Why does each note buy less when Quillby prints lots of notes?
There are more notes but the same amount of breadThe bread got biggerMira stopped baking
7
Number what happened in Quillby.
People go back to swapping things
Dani spends her notes the moment she is paid
Prices double overnight
Quillby prints lots of new notes
8
Join each to what happens when prices run away.
1A sack of flour
2Notes saved in a jar
3Notes spent at once
4A bolt of cloth
Abuy more than if she waits
Bstill wanted by people
Cstill useful tomorrow
Dbuy less every day
9
Dani says: if I wait a day to shop, my ten notes still buy five loaves. Is Dani right?
YesNo
10
Circle every true sentence about inflation.
Inflation is prices rising across the shopsA slow rise is always a disasterMost of the time prices creep up slowlyIt has never happened in real lifeIn a runaway time, savings can shrink to almost nothing
11
How does a runaway time like this end?
Prices fall back by themselves the next nightThe printing stops and a steadier money takes its placePeople spend even faster
12
Ask a grown-up what a loaf of bread cost when they were your age. Write the price.
13
Draw ten notes. Then draw how many loaves they buy on day 2.
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