n NISM Certifications
V-A NISM Series V-A
Medium

Inflation Risk is also referred to as _______ .

Practice question from NISM Series V A - Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Credit Risk

  2. B

    Liquidity Risk

  3. Purchasing Power Risk

    Correct answer

Why this is the answer

Inflation risk (or purchasing power risk) refers to the risk that inflation will reduce the purchasing power of the returns from investments, eroding the value of money over time.

Test yourself for real

Take a full NISM Series V-A mock test.

Same duration, same weighting, same difficulty distribution as the real exam — with explanations on every question.