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

Question

Quizplus · Accepted Answer

Inflation risk is the risk that the value of assets or income will be eroded by inflation, causing a decrease in buying power. Interest-rate risk is the risk of fluctuating interest rates affecting investments, income, or debt. Income risk refers to the uncertainty about future income. Personal risk includes unexpected events that could affect an individual's financial situation, such as health issues or job loss. Liquidity risk is the risk of not being able to convert an asset into cash quickly or easily.

The Rising or Falling of Prices That Causes Changes in Buying