SIE practice questionmediumEconomic Indicators and Account Types
Which account holder may be MOST sensitive to changes in the Consumer Price Index (CPI)?
- AA fund manager trading T-bills
- BA young investor in equities
- CA corporation issuing new bonds
- DA retiree with a fixed annuity✓ Correct answer
Explanation
Why D — A retiree with a fixed annuity
Retirees on fixed income may lose purchasing power as CPI rises. B’s equities can adjust for inflation over time. C and D are less directly impacted.
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