Which of the Following Statements Are False

question 302

Multiple Choice

Which of the following statements are false?

• A)If the CPI has gone up since the base year,inflation has occurred.
• B)Inflation generally occurs before wars.
• C)A period of great price stability since World War II was 1958 to 1964.
• D)Inflationary recessions first occurred in the 1970s.

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Definitions:

Available-for-Sale Debt Securities

Debt securities not classified as held-to-maturity or trading securities, recorded at fair value and subject to changes in the income statement upon realization.

Income Statement

A financial statement that reports a company's financial performance over a specific accounting period, detailing revenues, expenses, profits, or losses.

Trading Securities

Financial instruments that are purchased primarily for selling in the near term with the intention of generating profit from short-term price fluctuations.

Fair Value

The amount one would get from selling an asset or the cost to transfer a liability during a well-structured deal between participants in the market at the time of evaluation.