A Relative Price Is

question 68

Multiple Choice

A relative price is:

• A)the rate of inflation.
• B)a measure of overall prices at a particular point in time.
• C)the percentage change in a price index such as the CPI.
• D)the price of a specific good in comparison to the prices of other goods and services.

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Definitions:

Conversion

The act of changing one form of securities into another, such as converting bonds into shares of stock, or the process of changing one currency into another.

Trading Securities

Financial securities that are purchased and held primarily for sale in the near term to generate income on short-term price differences.

Unrealized Holding

A profit or loss that arises from the change in value of an investment that has not yet been sold or realized.