A Function of the Federal Trade Commission Is to

question 165

Multiple Choice

A function of the Federal Trade Commission is to

• A) investigate instances of faulty and misleading advertising.
• B) establish railway rates for interstate railroads.
• C) ban or recall unsafe consumer products.
• D) prevent insider trading in securities markets.

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Definitions:

CPI

An index measuring the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.

Consumer Price Index

An index measuring the change over time in the price level of a market basket of consumer goods and services purchased by households.

Purchasing Power

The real value of money in terms of the quantity of goods or services that one unit of money can buy.

Annual Interest Rate

The percentage rate at which interest is charged or paid on an amount over a year.