Question

__________ can be used to create a perfect inflation hedge.

a. Gold
b. Real estate
c. TIPS
d. The S&P 500 Index
e. None of the options are correct.

Answer 1

c. TIPS

Step-by-step explanation:

TIPS which is an acronym for Treasury inflation-protected securities is a kind of bond peculiar to the United States which is specifically formulated to shield or safeguard investments during the inflation period over a given time. It dynamically adjusts as inflation occurs, thereby protects the direct cost of investment and its rates of returns.

Hence, in this situation, the correct answer is option C. TIPS