Alex received a new television for Christmas. This is best described as inflation risk because the same television now costs $200 less than her purchase price. Option C is correct.
What is inflation risk?
Inflationary risk is defined as the risk that inflation will cut down the returns on an investment by trimming purchasing power. This is basically means that the value of money at present will reduce the amount of money in the upcoming time period.
The given scenario best explains that the value of television that was purchased in Christmas, will reduce after some time, denoted the example of inflation risk.
Therefore, option C is correct.
Learn more about the inflation, refer to:
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