An Example of ________ Risk Occurs When an Investment Does

question 136

Multiple Choice

An example of ________ risk occurs when 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

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Definitions:

Optimum

The most favorable condition or level for growth, reproduction, or success, often used in contexts of efficiency or economic well-being.

Income

The monetary payment received for work or through investments, including wages, salaries, or dividends.

Shirt

A shirt is a piece of clothing for the upper body, usually with sleeves and a collar.

Normal Good

A good for which demand increases as the consumer's income rises and decreases as the consumer's income falls.