Consider the Following Ratio: the Average Annual Inflation Rate/the Average

question 120

Multiple Choice

Consider the following ratio: the average annual inflation rate/the average annual money growth rate.If a country's rate of money growth consistently exceeds the rate of inflation the ratio would be:

• A)Less than one
• B)Greater than one
• C)That is infinite
• D)Exactly one

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Definitions:

Teller's Check

A check drawn by a bank on its own funds and signed by a teller, typically considered a secure form of payment.

Draft

A preliminary version of a piece of writing or design.

Transferable Check

A type of check that allows the original payee to endorse it to another party, transferring the right to cash or deposit.

Clearinghouse

An intermediary body that facilitates the exchange of payments, securities, or derivatives transactions among its members.