In an Indexed Lease,rents Are Dependent on a Regularly Reported

question 14

Multiple Choice

In an indexed lease,rents are dependent on a regularly reported index,most commonly the consumer price index (CPI) .By using the CPI as an index rate,the risk of unexpected increases in general inflation is shifted to the __________,and therefore a _________ base rental rate will typically be required.

• A)Owner;higher
• B)Owner;lower
• C)Tenant;higher
• D)Tenant;lower

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Definitions:

Reabsorption

The process by which the kidneys filter waste from the blood and reabsorb water and necessary substances back into the bloodstream.

Sodium Chloride

A chemical compound more commonly known as salt, widely used in food seasoning and preservation.

Cortex

The outer layer of various organs in the body, particularly the brain, where it is crucial for cognitive functions.

Kidney

An organ in vertebrates that filters waste products from blood to produce urine.