Taking a sum of money and decreasing it in size would fit the description of?

The process of taking a sum of money and decreasing it in size aligns with the concept of capital liquidation. In finance and insurance, capital liquidation refers to the process of converting an asset or capital into cash by selling it off or divesting portions of it. This generally implies a reduction in the capital available, whether through intentional sales or the drawing down of funds for various purposes, such as paying off debts or making distributions.

In contrast, capital accumulation refers to the growth of assets over time, while capital preservation focuses on protecting the value of an investment to ensure that the principal is not lost. Capital investment involves allocating funds with the expectation of generating future income or profit, which would not involve decreasing the size of the initial capital amount. Thus, capital liquidation is the correct term for the scenario described, where the amount of money is being reduced in size.