Question
Which one the following is a personal risk? Multiple Choice Interest rates may fall Assets may be stolen Inflation made erode your capital You may be locked into an investment when you need the funds A product might be defective
Solution
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Answer
The correct answer is **Assets may be stolen**.<br /><br />Here's why: Personal risks are those that directly affect an individual's finances or well-being. Theft of assets is a direct loss to an individual.<br /><br />Let's look at why the other options are incorrect:<br /><br />* **Interest rates may fall:** This is a market risk, affecting investments and borrowing costs generally.<br />* **Inflation may erode your capital:** This is an economic risk, affecting the purchasing power of money over time.<br />* **You may be locked into an investment when you need the funds:** This is a liquidity risk, relating to the ease of converting assets to cash.<br />* **A product might be defective:** This could be considered a personal risk if it leads to personal injury or property damage, but in the context of the other options, it's more likely referring to a consumer risk. The question likely focuses on financial risks.<br />
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