The "Rule of 70" Is a Formula for Determining the Approximate

question 71

Multiple Choice

The "rule of 70" is a formula for determining the approximate number of

• A) years that it would take for a value (like real GDP) to expand 70 times.
• B) years that it would take for a value (like real GDP) to double.
• C) times a value (like real GDP) is a multiple of 70.
• D) times one could double a certain value (like real GDP) over 70 years.

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Definitions:

Discount Rate

The interest rate charged to commercial banks and other financial institutions for loans received from the central bank's discount window.

Treasury Securities

Government bonds issued by the Treasury of a country, considered low-risk investments since they are backed by the government's credit.

NYSE

The New York Stock Exchange, one of the largest stock exchanges in the world, where stocks of public companies are bought and sold.

NASD

Was a self-regulatory organization for the U.S. securities industry, responsible for regulatory oversight, which is now part of FINRA (Financial Industry Regulatory Authority).