n NISM Certifications
XXI NISM Series XXI-A
Medium

Which of the following best describes 'Inflation Risk'?

Practice question from NISM XXI A for PMS - Mock Test 2 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    The risk of losing principal due to market downturns

  2. The risk that rising prices erode purchasing power of returns

    Correct answer

  3. C

    The risk of default by the issuer

  4. D

    The risk of currency exchange fluctuations

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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