For Purposes of Calculating the CPI,the Food & Beverages Category

question 151

Multiple Choice

For purposes of calculating the CPI,the food & beverages category of consumer spending includes the cost of

• A)food away from home.
• B)alcoholic beverages.
• C)both food away from home and alcoholic beverages.
• D)neither food away from home nor alcoholic beverages because these are included in the recreation category of consumer spending.

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Definitions:

Strike Price

The fixed price at which the owner of an option can purchase (in the case of a call option) or sell (in the case of a put option) the underlying security or commodity.

American Warrant

An instrument that grants the holder the right to buy shares of a company at a specific price before the warrant expires.

Convertible Bond

A type of bond that can be converted into a predetermined number of the issuer's equity shares at certain times during its life, according to the terms of the bond.

Put Option

An agreement in finance that allows the purchaser the option, without being compelled, to sell a predetermined quantity of a basic asset at an agreed price before a certain deadline.