When the Consumer Price Index Increases from 100 to 115

question 126

Multiple Choice

When the Consumer Price Index increases from 100 to 115

• A)more money is needed to buy the same amount of goods, so the value of money falls.
• B)more money is needed to buy the same amount of goods, so the value of money rises.
• C)less money is needed to buy the same amount of goods, so the value of money falls.
• D)less money is needed to buy the same amount of goods, so the value of money rises.

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Definitions:

Cashier's Check

A check issued by a bank, drawn from its own funds and signed by a cashier, considered very secure as it guarantees the available amount of cash.

Paying

The act of giving money, goods, or other forms of value in exchange for an item, service, or to fulfill an obligation.

Debt

An amount of money borrowed by one party from another, often with the condition of repayment with additional interest.

Promissory Note

A written, legally binding promise to pay a specified sum of money to a designated party on demand or at a defined future date.