__________ can be used to create a perfect CPI-measured inflation hedge.
A) Gold
B) Real estate
C) TIPS
D) The S&P 500 Index
E) None of the options are correct.

Question

Quizplus · Accepted Answer

TIPS, or Treasury Inflation-Protected Securities, are designed to provide protection against inflation. The principal value of TIPS increases with inflation and decreases with deflation, which is measured by the Consumer Price Index (CPI). This makes them an effective hedge against CPI-measured inflation.

__________ Can Be Used to Create a Perfect CPI-Measured Inflation