Which of the Following Statements About the Expiration Dates of Medications

question 39

Multiple Choice

Which of the following statements about the expiration dates of medications is TRUE?

• A)Medications should be disposed of on or before their expiration date.
• B)Expiration dates should be ignored;they are used by the manufacturer to increase sales.
• C)A study by the FDA found that 90 percent of all medications are potent several years after their stated expiration date.
• D)Medications don't ever lose their potency as long as they are sealed tight and stored in a cool,dry place.

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Definitions:

Liquidity Premium (LP)

Liquidity Premium refers to the extra return investors demand to compensate for investing in securities with low liquidity or those difficult to sell quickly at market value.

Real Risk-free Rate

The rate of return on a risk-free investment, after adjusting for inflation. It represents the true purchasing power gained from investing.

Real Risk-free Rate

The rate of return on an absolutely risk-free investment, adjusted for inflation, representing the minimum return investors would expect for any investment risk.

Inflation Premium (IP)

The additional amount that investors require on the return of an investment to compensate for the loss of purchasing power due to inflation.