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What are the four risks taken when saving and investing money?

User Bobby King
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1 Answer

4 votes

Answer:

inflation risk, equity risk ,interest rate risk ,liquidity risk

Step-by-step explanation:

Saving money refers to stacking cash away in interest bearing account. This could be in form of a en emergency savings account. An investment on the other hand could be in form of buying stocks or bonds.All these have risks and one of them is inflation risk; occurs when overall prices of goods and services increase and putting money into an account that has a yield lower than the inflation is risky. Investment in stocks also have equity risk due to movement in prices of stocks and the last two are interest rate risk and liquidity risk.

User Dustin
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