Which of the Following Best Defines "Indexation

question 67

Multiple Choice

Which of the following best defines "indexation"?

• A)It is a process of adjusting the nominal interest rate so that it is equal to the real interest rate.
• B)It is the use of a law or contract to automatically correct a dollar amount for the effects of inflation.
• C)It is the use of a price index to deflate dollar values.
• D)It is an adjustment made by Statistics Canada to the CPI so that the index is in line with the GDP deflator.

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Definitions:

Shareholders

Individuals or entities that own shares in a corporation, giving them partial ownership and possibly a right to vote at shareholders' meetings.

Capital Employed

The total amount of capital used for the acquisition of profits by a firm or project, including assets and working capital.

Debt

An obligation owed by one party to a second party; in financial terms, it typically refers to money borrowed by one party from another.

Capital Employed

Capital employed refers to the total amount of capital used for the acquisition of profits by a firm or project. It is typically the value of all assets employed in a business.