Patrick Jones is interested in purchasing a 65" LED TV for his living room.Patrick knows that right now the TV will cost approximately $500.He is not sure he can afford this TV right now but is worried that if he waits,the cost of the TV will rise to $800.Which type of risk is Patrick worried about?
A)Inflation risk
B)Interest rate risk
C)Income risk
D)Personal risk
E)Liquidity risk

Question

Quizplus · Accepted Answer

Patrick is worried about inflation risk, which refers to the possibility that the value of money will decrease over time, leading to higher prices for goods and services. In this case, he is concerned that the price of the TV will increase from $500 to $800, which is a classic example of inflation risk affecting purchasing power.

Patrick Jones Is Interested in Purchasing a 65" LED TV