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You get a guaranteed return depending on how long you lock up your cash. You may or may not beat inflation, but it still protects you on some level.
by fny 4y ago
You get a guaranteed return depending on how long you lock up your cash. You may or may not beat inflation, but it still protects you on some level.
- TekMol 4y agoA guaranteed return of dollars. What those dollars are worth is not guaranteed. Imagine Tesla would hand out a certain type of share that after 10 years turns into 2 shares. Nobody would call that a risk free return. Because you don't know how much dollars you will get for those two shares. The same with dollars. You don't know how much Tesla shares you will get for those dollars.
- bigdict 4y agoYou don't get a guaranteed return because the borrower can default.