inflation, currency -schweser pratcice V2 first morning Q9

in schweser pratice V2 Q9, why inflation goes up, we should invest cash rather than stock, I remember if in inflation, people tend to buy stock and rather than in holding cash or fixed deposit

it also states that if german interest rate reduce, German currency will go up according to capital flow point of view, but if rate reduce, capital leave the country, how can currency strong?