Q201
The risk that arises due to change in the purchasing power is called ?
A.
Financial risk
B.
Interest rate risk
C.
Business risk
D.
Inflation risk
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
The risk that arises due to change in the purchasing power is called Inflation risk. Inflation risk, also called purchasing power risk, is the chance that the cash flows from an investment won't be worth as much in the future because of changes in purchasing power due to inflation.