An example of ________ risk occurs when the financial return on an investment does not keep up with prices that are increasing in the overall economy.
A)market
B)interest
C)inflation
D)business failure
E)current

Question

Quizplus · Accepted Answer

Inflation risk occurs when the return on an investment does not keep up with the rising prices in the economy, meaning the purchasing power of the investment's returns diminishes over time.

An Example of ________ Risk Occurs When the Financial Return