The rising of prices that causes changes in buying power is referred to as ____________ risk.

Question

Quizplus · Accepted Answer

Inflation risk refers to the possibility that the rising price levels can reduce the purchasing power of money, affecting the value of investments and the overall economy. Interest rate risk refers to the adverse impact of interest rate fluctuations on the price of bonds and their interest payments. Income risk refers to the possibility of a decrease in income due to factors such as job loss, disability, or illness. Liquidity risk refers to the inability to sell an asset quickly and at a fair price. Personal risk refers to the possibility of harm to life, health, or personal property.

The Rising of Prices That Causes Changes in Buying Power