Question
Which of the following describes the risk of holding money to store wealth when inflation is nonexistent or mild?
Multiple choice question.
High risk
Average risk
Relatively high risk
Relatively risk-free
Multiple choice question.
High risk
Average risk
Relatively high risk
Relatively risk-free
Answers
GPT-4o mini
When inflation is nonexistent or mild, holding money to store wealth can be considered **relatively risk-free**. This is because the purchasing power of money would remain stable, and holding cash would not significantly diminish its value.