Which of the Following Best Defines "Indexation

question 67

Multiple Choice

Which of the following best defines "indexation"?

• A)It is a process of adjusting the nominal interest rate so that it is equal to the real interest rate.
• B)It is the use of a law or contract to automatically correct a dollar amount for the effects of inflation.
• C)It is the use of a price index to deflate dollar values.
• D)It is an adjustment made by Statistics Canada to the CPI so that the index is in line with the GDP deflator.

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Definitions:

Acid Catalyst

A substance that increases the rate of a reaction by donating protons (H+) without being consumed in the process.

Reaction

A chemical process in which substances interact to form new products, involving changes in chemical bonds.

Cyanohydrin

Organic compounds with a nitrile and a hydroxyl functional group attached to the same carbon atom.

Aldehyde

An organic compound characterized by the presence of a carbonyl group bonded to at least one hydrogen atom.