____________ risk refers to the danger of lost buying power during times of rising prices.
A) Trade-off
B) Economic
C) Personal
D) Inflation
E) Interest-rate

Question

Quizplus · Accepted Answer

Inflation risk refers to the loss of purchasing power due to the rise in prices. As prices increase, the value of a currency decreases, leading to the inability to purchase the same amount of goods and services with the same amount of money. This risk is relevant to anyone with cash or investments that could potentially lose value due to inflation.

____________ Risk Refers to the Danger of Lost Buying Power