The "Basket of Goods" Included in the Consumer Price Index

question 224

True/False

The "basket of goods" included in the Consumer Price Index has remained the same over the years so the government can make accurate year-to-year comparisons about the rate of inflation.

---

Definitions:

Compensating Balance

A minimum account balance that a borrower agrees to maintain in a bank account as a condition for receiving a loan, often to compensate the bank for the loan or to secure better loan terms.

Footnotes

Additional information provided at the end of financial statements to give more detail or provide explanations about items in the financial statements.

Credit Sale

A type of transaction in which goods or services are provided to a customer with the understanding that payment will be made at a later date.

Collectibility

The likelihood that a receivable will be collected from a debtor, typically considered in revenue recognition and accounting for bad debts.