If the CPI Is 231 $\frac { ( 241.2 - 231.4 ) } { 231.4 }$

question 43

Multiple Choice

If the CPI is 231.4 in one year and is 241.2 in the next year, then the inflation rate equals

• A)(241.2-231.4)× 100.
• B) \(\frac { ( 241.2 - 231.4 ) } { 231.4 }\) × 100.
• C) \(\frac { 241.2 - 231.4 } { 241.2 }\) × 100.
• D) \(\frac { 231.4 - 241.2 } { 231.4 }\) × 100.
• E) \(\frac { 231.4 - 241.2 } { 241.2 }\) × 100.

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Definitions:

Cash Conversion Cycle

An index quantifying the period a business needs to turn its investments in inventory and other assets into cash flows generated through sales.

Accounts Receivable

Accounts Receivable refers to the money owed to a company by its customers for goods or services that have been delivered but not yet paid for.

Inventory Level

Represents the quantity of goods or materials a company holds at a particular time, crucial for meeting production and sales demands.

Short-term Financing

Short-term financing refers to borrowing funds for a period of less than one year, often used for immediate cash flow needs.