If the Consumer Price Index Changes from 120 in the Year

question 88

Multiple Choice

If the Consumer Price Index changes from 120 in the year 2009 to 126 in the year 2011, the average rate of inflation per year over this two- year period is approximately

• A)5 percent.
• B)3 percent.
• C)2.5 percent.
• D)1.5 percent.
• E)6 percent.

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Definitions:

Prime Rate

The Prime Rate is the interest rate that commercial banks charge their most credit-worthy customers, often used as a benchmark in setting rates for various types of loans.

Unqualified Customer

A customer who does not meet the necessary criteria or requirements set by a business or a regulatory body to purchase certain products or services.

Federal Government

The national government of a federated state, which holds the authority to govern issues that affect the entire country.

Charters

Legal documents that establish the existence of corporations or cities and define their rights and privileges.