Question:

You invest $1000 in a government security which pays a 10%

Last updated: 8/13/2022

You invest $1000 in a government security which pays a 10%

You invest $1000 in a government security which pays a 10% interest rate after a year, but this $1000 would buy 20 headphones, currently at $50 per headphone. After a year, you get $1100, but you could buy only 20 headphones or less with the amount. Which of the following concepts suits the above statement? Inflation risk Investment risk Business risk Profit risk