A Valuable Asset Was Priced at $1 Million in 1995

question 9

Multiple Choice

A valuable asset was priced at $1 million in 1995. What should be its nominal price in 2012 if the CPI was 95 in 1995 and 145 in 2012?

• A)$0.95 million
• B)$1.25 million
• C)$1.45 million
• D)$1.53 million
• E)$1.65 million

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Definitions:

Yeoman Farmer

An independent farmer who generally owned and worked a small plot of land, significant in American folklore as an embodiment of self-reliance and democratic ideals.

Cotton

A natural fiber obtained from the seeds of the cotton plant, widely used in textile manufacturing.

Cash Crop

A crop grown for the purpose of being sold on the market to generate profit rather than for the farmer's own use or consumption.

Financial Insecurity

A state where individuals or households lack stable financial resources, creating uncertainty and stress over meeting basic needs.