Pick the Best Choice by Estimating

question 203

Multiple Choice

Pick the best choice by estimating. Do not measure. For metric measurements, do not attempt to convert to the U.S. system. The hardest part of the transition to the metric system is the transition to thinking in metrics. The length of a dollar bill is about __________.

• A) 9 in.
• B) 7 in.
• C) 10 in.
• D) 4 in.
• E) 2 in.

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Definitions:

Stock Market

A public market for buying, selling, and trading company shares and securities.

Long-term Real Rate

The interest rate on a long-term loan or investment, adjusted for the effects of inflation, reflecting the real cost of borrowing or the real yield on an investment.

Bonds

Fixed-income securities where an investor loans money to an entity (corporate or sovereign) which borrows the funds for a defined period of time at a variable or fixed interest rate.

Average Rate Of Return

A measure of the profitability of an investment, calculated by dividing the average annual profit by the initial investment cost.