Texas Real Estate Exam

Answer: D. Equity assets such as the purchase of a home tend to increase in value in an inflationary economy and generally at a rate of value growth that exceeds the rate of inflation. a) Savings accounts tend to offer rates of return far below the inflation rates. b) Fixed interest rate “government backed loans” also tend to offer undesirable returns as would c) Long term government bonds, which normally carry rates lower than that of other investment opportunities.