TIPS are appropriate for investors who are conservative and concerned about inflation.

Question

Quizplus · Accepted Answer

TIPS, or Treasury Inflation-Protected Securities, are designed to protect investors from inflation as their principal and interest payments are adjusted based on changes in the Consumer Price Index (CPI). Therefore, they are suitable for investors who are conservative and worried about the effects of inflation on their investments.

TIPS Are Appropriate for Investors Who Are Conservative and Concerned