Treasury bills cannot withstand inflation risk since a fixed amount is promised to be repaid when the treasury bill is issued. No market fluctuations are later considered when the investment attains maturity. The other options, however, are impacted by the highs and lows of the market and inflation as well. So although inflation makes the purchasing power of our money low, investments like gold, equity investments, and mutual funds, which achieve high gains during market highs, compensate the loss of our real income. This is absent in fixed income securities like treasury bills.
Treasury bills cannot withstand inflation risk since a fixed amount is promised to be repaid when the treasury bill is issued. No market fluctuations are later considered when the investment attains maturity. The other options, however, are impacted by the highs and lows of the market and inflation as well. So although inflation makes the purchasing power of our money low, investments like gold, equity investments, and mutual funds, which achieve high gains during market highs, compensate the loss of our real income. This is absent in fixed income securities like treasury bills.