During inflationary periods,cash assets serve poorly as a store of value.

Question

Quizplus · Accepted Answer

Inflation erodes the purchasing power of cash assets, making them a poor store of value during inflationary periods. This is because the value of the cash decreases over time, and the goods and services it can buy are reduced. As a result, investors tend to look for alternative investments that can keep up with or even outpace inflation, such as stocks, real estate, or commodities.

During Inflationary Periods,cash Assets Serve Poorly as a Store of Value