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

Which of these is an important factor while estimating the correct future value of a financial goal?

Practice question from Nism VA Mock Test 4 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. Inflation Rate

    Correct answer

  2. B

    Risks which are unexpected

  3. C

    Economic Growth

  4. D

    Return and Gains

Why this is the answer

Inflation is a critical factor when calculating the future value of a financial goal, as it erodes the purchasing power of money over time. The formula used for future value includes inflation rate as a key variable.

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