Table 24-11

question 459

Multiple Choice

Table 24-11. Megan's salary for three consecutive years, along with other values, is presented in the table below.
-Refer to Table 24-11. The nominal interest rate for 2012 is

• A)0.93 percent.
• B)6.70 percent.
• C)4.44 percent.
• D)4.47 percent.

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Definitions:

Wheat Future Contract

A legal agreement to buy or sell wheat at a predetermined price at a specified time in the future, used for hedging or speculation.

Spot Price

The current market price at which an asset, like a commodity, currency, or security, can be bought or sold for immediate delivery.

Bushel

A unit of volume that is used in the United States for trading and pricing agricultural commodities like corn, wheat, and soybeans.

S&P 500 Index

A stock market index that measures the stock performance of 500 of the largest companies listed on stock exchanges in the United States.