A Measure of How Fast Prices Are Rising Is Called

question 30

Multiple Choice

A measure of how fast prices are rising is called the:

• A)growth rate of real GDP.
• B)inflation rate.
• C)unemploymentrateD.market-clearing rate.

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Definitions:

Primary Market

The market in which new issues of securities are offered to the public.

Initial Margin

The portion of the purchase price that an investor must deposit as collateral when buying on margin, to cover credit risk.

Rate of Return

The financial gain or loss encountered on an investment throughout a set period, calculated as a percentage of the investment’s initial outlay.