American Bankers Association Exam CTFA Topic 9 Question 35 Discussion

Actual exam question for American Bankers Association's CTFA exam

Question #: 35
Topic #: 9

[All CTFA Questions]

___________ means that investors want to minimize their risk of loss, usually in real terms: They seek to maintain the purchasing power of their investment. In other words, the return needs to be no less than the rate of inflation.

ACapital preservation

BCapital appreciation

CCapital depreciation

DCapita budgeting

Show Suggested Answer

Suggested Answer: B

by Xochitl at Aug 25, 2022, 01:30 AM

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Mitsue

1 months ago

Capita budgeting? I thought we were talking about investments, not the Roman Empire.

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Katina

24 days ago

C) Capital depreciation

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Leatha

26 days ago

B) Capital appreciation

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Dean

1 months ago

A) Capital preservation

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Carla

2 months ago

Capital depreciation? Guess I should just throw my money into the nearest volcano and call it a day.

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Cristina

9 days ago

Investors aim for capital preservation to protect their investments from losing value.

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Cristina

9 days ago

Capital preservation is all about minimizing risk and maintaining purchasing power.

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Cristina

17 days ago

No, that's not the right option. It's actually capital preservation.

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Merlyn

2 months ago

Capital appreciation? Looks like I need to start a cryptocurrency farm in my basement.

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Maia

15 hours ago

B) Capital appreciation

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Dolores

16 days ago

A) Capital preservation

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Barbra

19 days ago

That's right, they seek to maintain the purchasing power of their investment.

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Hester

30 days ago

B) Capital appreciation

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Arletta

1 months ago

Yes, investors want to minimize their risk of loss.

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Cherry

1 months ago

A) Capital preservation

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Izetta

2 months ago

Capital preservation? Sounds like I need to wrap my investments in bubble wrap!

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Idella

1 months ago

User1

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Jestine

2 months ago

User2

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Gail

2 months ago

I agree with A. It's important to minimize risk and maintain purchasing power.

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Adolph

2 months ago

I think it's A too. Investors always want to protect their capital.

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Pauline

2 months ago

A) Capital preservation

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