____ risk is the risk that the value of an investment will decline when overall prices decline.
A)Inflation
B)Deflation
C)Interest rate
D)Financial

Question

Quizplus · Accepted Answer

Deflation risk is the risk of a decrease in the general price level of goods and services in an economy, which can result in a decline in the value of an investment. Inflation risk, on the other hand, is the risk that the value of an investment will be eroded over time due to an increase in the general price level. Interest rate risk is the risk that changes in interest rates will affect the value of an investment, while financial risk refers to the risk of default or bankruptcy of an issuer of a security.

____ Risk Is the Risk That the Value of an Investment