The Price Index Was 105 in Year 1 and 108

question 100

Multiple Choice

The price index was 105 in Year 1 and 108 in Year 2. What was the inflation rate?

• A)2.9 percent
• B)0.029 percent
• C)-2.9 percent
• D)102.9 percent

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Definitions:

Common Shares

Shares to which no preferential rights or privileges are attached.

Broadly Held Corporation

A corporation with a large number of shareholders, spreading ownership widely among individuals.

Closely Held Corporation

A corporate entity characterized by a small group of shareholders, often with family members holding a majority of the stock.

Fiduciary Duty

An obligation to act in the best interest of another party, such as the relationship between a trustee and the beneficiaries of a trust.