Exhibit 51
Use the Information Below for the Following Problem(S)

question 12

Multiple Choice

Exhibit 5.1
Use the Information Below for the Following Problem(S)
                    
$\begin{array}{c}\begin{array}{lll}\text { Number of shares}\end{array}\begin{array}{lll}\text { Glasing Prices}\end{array}\begin{array}{lll}\text { (per share) } \end{array}\end{array}$

$\begin{array}{cccc}\text { Companies } & \text { outstanding } & \text { Day T } & \text { Day T + 1 } \\\hline 1 & 2,000 & \$ 30.00 & \$ 25.00 \\2 & 7,000 & 55.00 & 60.00 \\3 & 5,000 & 20.00 & 25.00 \\4 & 4.000 & 40.00 & 45.00\end{array}$

-Refer to Exhibit 5.1.Compute an unweighted price indicator series,using geometric means.What is the percentage change in the index from Day T to Day T+1? Assume a base index value of 100 on Day T.

• A) 5.35%
• B) 7.48%
• C) 9.93%
• D) 6.33%
• E) None of the above

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Definitions:

Printing Money

The process by which the central bank of a country increases the amount of currency in circulation, often leading to inflation if not carefully managed.

Nominal Interest Rate

The nominal interest rate refers to the percentage increase in money that the borrower pays the lender, excluding any adjustments for inflation.

Real Interest Rate

The inflation-adjusted interest rate, representing the actual borrowing cost and the genuine earnings for savers.

Real Value

The worth of a good or service adjusted for inflation, showing its true purchasing power.