The Data in the Table Above Shows the Consumption by |

question 226

Multiple Choice

$$\begin{array} { | l | c | c | c | c | } \hline \text { Item } & \begin{array} { c } \text { Quantity } \\( 2009 ) \end{array} & \text { Price (2009) } & \begin{array} { c } \text { Quantity } \\( 2010 ) \end{array} & \text { Price (2010) } \\\hline \text { Magazines } & 400 & \$ 5.00 & 450 & \$ 4.50 \\\hline \text { Movie tickets } & 50 & \$ 6.00 & 200 & \$ 8.00 \\\hline \text { Pizzas } & 100 & \$ 10.00 & 120 & \$ 10.50 \\\hline\end{array}$$
The data in the table above shows the consumption by families in an economy.The year 2009 is the reference base period.
-Based on the table above, the CPI for 2009 is

• A) 100.
• B) 98.5.
• C) 102.5.
• D) 5.0%.
• E) 105.1.

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Definitions:

Par Value

The face value of a bond or the stock value stated in the corporate charter, often used in legal documents.

Effective Annual Yield

Effective annual yield is the return on an investment expressed as an annualized rate, accounting for compounding over a period, providing a more accurate measure of profitability.

Yield To Maturity

The total return anticipated on a bond if the bond is held until it matures, incorporating both interest payments and the capital gain or loss due to the difference between the purchase price and the maturity value.