Question

Which one of the statements is false?

Inflation is the general increase in the prices of goods and services.

The risk of capital losses increases over time.

Conservative investors should have a higher allocation to cash than aggressive investors.

You will pay income tax on the interest that you earn.

Answer 1

[AI-generated answer — Bot GPT 3.5]

The statement "The risk of capital losses increases over time" is false. The risk of capital losses does not necessarily increase over time. It can vary depending on various factors such as market conditions, the specific investment vehicle, and the investor's risk tolerance and investment strategy.