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.
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