Question

In order for your savings and investments to truly increase value, what must they do?


A) Increase their opportunity cost.


B) Reduce in liquidity.


C) Increase faster than the inflation rate.


D) Produce interest.

Answer 1

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Explanation:

Answer 2

In order for your savings and investments to truly increase value, the increase must be faster than the inflation rate. Option C is correct.

What is the Inflation Rate?

• It is the rate at which the cost of money is increasing per unit of product or service in a given period of time.

• Or simply a percentage increase in the rate of products per year.

• For example- If a person invest $100

• After a year he gets 12% returns and at the same price of products increased by 12%, then did not get any returns.

Therefore, in order for your savings and investments to truly increase value, the increase must be faster than the inflation rate.

Learn more about the Inflation Rate:

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