IFMP Mutual Fund Basic Certification (MFBC), Pakistan Practice Questions - IFMP Mutual Fund Basic Certification (MFBC), Pakistan Exam

If inflation is 4% and an investor’s after-tax return is 3% over the same year, what happens to real buying power?

Buying power rises by about 7% Buying power is unchanged Buying power falls by about 1% Buying power doubles

Correct Answer:

Buying power falls by about 1%

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