The possibility that you are too conservative and your money doesn't grow fast enough to keep pace with inflation is called ________.

Question

Quizplus · Accepted Answer

Purchasing power risk is the possibility that your money's value may decrease over time due to inflation if it isn't growing fast enough. This risk is particularly relevant for conservative investments that have lower potential returns but are less risky. Option B (liquidity risk) refers to the possibility of not being able to access your money when you need it, while option C (timing risk) refers to the possibility of poor timing when buying or selling assets. Option D (market risk) refers to the possibility of losses due to market fluctuations.

The Possibility That You Are Too Conservative and Your Money