Which of the Following Is NOT Included in the Rate

question 14

Multiple Choice

Which of the following is NOT included in the rate of core inflation?

• A) all foreign-produced goods
• B) any good that makes up less than 10 percent of the CPI basket of goods
• C) the most volatile components from the CPI basket of goods and services
• D) the least volatile components from the CPI basket of goods and services

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Definitions:

Diversifiable Risk

Is the type of investment risk that can be reduced through diversification of a portfolio, related to specific factors affecting individual companies or sectors.

Market Rewards

The returns or gains that investors expect to earn from their investments in the financial markets.

Non-diversifiable Risks

Risks that affect all investments across the market and cannot be mitigated through diversification.

Financial Markets

Marketplaces where individuals and entities can trade financial securities, commodities, and other fungible items of value at low transaction costs and at prices that reflect supply and demand.