Frequently Asked Question

October 01 2010  |  Filed Under »

The security which offers the best protection against purchasing power risk or inflation is which of the following?

a. fixed annuity

b. common stock

c. treasury bond

d. certificate of deposit


Answers: b

Debt securities and investments that promise fixed rates of returns are the most susceptible to purchasing power risk or inflation. Fixed annuities, CD’s, and treasury bonds all fall under these categories.

Sign Up For Investing Basics!

Try Our Stock Simulator!

Test your trading skills!

by

Free

Free
No writer biography is available.
comments powered by Disqus
Last Questions Asked:
  1.

    Does the federal government fund any NGOs? Which ones?

  2. If I want to have some cash in a liquid account for unexpected emergencies, what is best? A savings account or another type?

  3. What is a triple tax-free municipal bond?

Recommended
Loading, please wait...
See More »
Trading Center