If Inflation in Wonderland Averaged About 3% Per Month in 2013

question 117

Multiple Choice

If inflation in Wonderland averaged about 3% per month in 2013, what was the annual rate of inflation?

• A) 36.00%
• B) 42.58%
• C) 40.09%
• D)41.27%

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Definitions:

Cheques

Physical, written instruments instructing a bank to pay a specific amount of money from the writer's account to the person or entity named on the cheque.

Debit Cards

Payment cards that deduct money directly from a consumer's checking account to pay for a purchase, contrasting with credit cards which provide a line of credit.

Concentration Account

A single centralized bank account designed to streamline cash management by consolidating funds from multiple accounts, often used by corporations to improve liquidity management.

Zero-Balance Account

A bank account that keeps a zero balance by instantly moving money from a primary account in the precise amount needed to settle any checks drawn on it.