You chose B

You have put your money in a checking account and will receive an income which will vary as interest rates vary.  The next day interest rates move to 5% and so your income is reduced from £10k per year to £5k per year.

Context – You have retired and operate on a very strict budget.

With the additional £10k per year you can just about afford to maintain your current lifestyle.

Now you only have £5k per year to supplement your pension you are going to have to make some severe cutbacks.

You really should have managed your risk better.

Would you like to change your vote to answer A?  if so click here.

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