Which of the following assets decreases the most in purchasing power during inflation?

Question

Quizplus · Accepted Answer

Cash decreases the most in purchasing power during inflation because its value is directly tied to its purchasing power. As inflation rises, the prices of goods and services increase, which means that the purchasing power of cash decreases. This is why it is important to invest cash in assets that can keep up with inflation, such as stocks or real estate, instead of holding onto it in a savings account or as physical cash.

Which of the Following Assets Decreases the Most in Purchasing