If the Price of a Soda Was 15 Cents in 1970,when

question 54

Multiple Choice

If the price of a soda was 15 cents in 1970,when the CPI was 50,and 50 cents in 2007 when the CPI was 172,then the real price of

• A)a soda has risen 567 percent.
• B)a soda has risen 350 percent.
• C)the 1970 soda in 2007 dollars is 52 cents.
• D)the 2007 soda in 1970 dollars is $3.44.
• E)the soda was 15 cents in 1970 and 50 cents in 2007.

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Definitions:

Banking System

A network of financial institutions, including banks, that provide financial services to the public and businesses.

Availability Float

The time difference between when a deposit is made in a bank account and when the amount becomes available for use.

Collection Float

The time gap between when a check is deposited into a bank account and when the funds become available.

Opportunity Cost

Opportunity cost refers to the potential benefits an individual, investor, or business misses out on when choosing one alternative over another.