Exams

Inflation risk, also called purchasing power risk, is the chance that the cash flows from an investment won't be worth as much in the future because of changes in purchasing power due to inflation.

HOW IT WORKS (EXAMPLE):

For example, $1,000,000 in bonds with a 10% coupon might generate enough interest payments for a retiree to live on, but with an annual 3% inflation rate, every $1,000 produced by the portfolio will only be worth $970 next year and about $940 the year after that. The rising inflation means that the interest payments have less and less purchasing power. And the principal, when it is repaid after several years, will buy substantially less than it did when the investor first purchased the bonds.

Potentially hazardous foods are foods that might contain food poisoning bacteria and are capable of supporting growth of these bacteria or formation of toxins to levels that are unsafe for consumers, if the foods are not stored at correct temperatures. Toxins are poisonous chemicals produced by some types of bacteria.

The food can be left at room temperature until it reaches 60 deg C because food-poisoning bacteria will not multiply at 60 deg C or above. However, do not leave food cooling at room temperature unless you are sure that the temperature of the food is still at least above 60 C.

An atom that loses or gains electrons is called as ion. Gaining of electron is negative charge and is called as Anion and lossing of eectron is called Cation.