Between 1928 and 2018, the Average Annual Return on Treasury

question 121

Multiple Choice

Between 1928 and 2018, the average annual return on Treasury Bills averaged _____%, while the average annual inflation rate averaged _____%.

• A) 5.4, 3.07
• B) 3.4, 3.06
• C) 3.8, 5.4
• D) 3.2, 3.8

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Definitions:

External Transactions

Financial transactions between a business and an outside party, which can include buying from or selling to another company.

Retained Earnings

The portion of net income that is not distributed to shareholders as dividends, but rather kept by the company for reinvestment in its operations or to pay debt.

Closing Process

The accounting procedures used to close out business accounts at the end of an accounting period.

Income Summary Account

A temporary ledger account used during the closing process that accumulates revenues and expenses before transferring the net amount to the capital or retained earnings account.