If the Consumer Price Index for a Certain Year Is

question 45

Multiple Choice

If the Consumer Price Index for a certain year is 120, this means that the average price of consumer items in that year was

• A) 20 percent higher than the average price in the base period 1982-84.
• B) about $120 per basket of consumer goods and services.
• C) 120 percent higher than the average price in the base period 1982-84.
• D) 20 percent higher than the average price of the preceding year.

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Definitions:

Residual Value

The estimated value of an asset at the end of its useful life.

Capital Lease

A lease classified by lessees as an asset purchase, indicating that the lessee effectively has control over the asset during the lease term.

Interest Revenue

Income earned from deposit accounts or investments through the interest paid by the borrower to the lender.