Using the Rule of 70, If China's Current Growth Rate

question 91

Multiple Choice

Using the Rule of 70, if China's current growth rate of real GDP per person was 7 percent a year, how long would it take the country's real GDP per person to double?

• A) 35 years
• B) 14 years
• C) 10 years
• D) 49 years

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Definitions:

Risk-Free Rate

The theoretical return on an investment with zero risk, often represented by the yield on government bonds.

Strike Price

The strike price, in options trading, is the price at which the holder of an option contract can buy (call option) or sell (put option) the underlying security or commodity.

Call Option

A financial contract giving the buyer the right, but not the obligation, to purchase an asset at a specified price within a particular time frame.

Option Contract

A financial contract that gives the buyer the right, but not the obligation, to buy or sell an asset at a specified price on or before a specific date.