Set 5: Words in Context (Intermediate)

Explanation

Answer: B

PASSAGE

Economists suggest that high inflation acts as a ______ tax on savings, slowly reducing their purchasing power over time.

Which choice completes the text with the most logical and precise word or phrase?

A. visible

B. hidden✓ Correct

C. voluntary

D. beneficial

Detailed Explanation

Inflation reduces value without directly taking money from a paycheck, so it's not obvious. 'Hidden' fits this description.

Key Evidence:

• "acts as a ... tax"

• "slowly reducing"

• "not explicitly paid"

Why others are wrong: A (Visible means easily seen.), C (Voluntary means by choice.), D (Beneficial implies it helps.).

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