Pensions and Annuities That Account for Inflation Are Said to Be

question 7

Multiple Choice

Pensions and annuities that account for inflation are said to be

• A)inflation accounted.
• B)inflation rated.
• C)inflation adjusted.
• D)inflation indexed.

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Definitions:

Common Stock

A form of corporate equity ownership, a type of security that represents ownership in a corporation, with voting rights and a claim on a portion of its profits in the form of dividends.

Preferred Stock

Capital stock that has some preferences over common stock.

Times Interest Earned

A financial ratio that measures a company's ability to meet its interest payments with its earnings before interest and taxes.

Interest Coverage Ratio

A financial metric that measures a company's ability to pay interest on its outstanding debt with its operating income.