If the Consumer Price Index Is 135 at the End

question 55

Multiple Choice

If the consumer price index is 135 at the end of 2011 and,at the end of 2012,it is 142,then during 2012 the economy experienced

• A) deflation.
• B) inflation.
• C) hyperinflation.
• D) indexing.
• E) deflating.

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Definitions:

Held-To-Maturity Securities

Debt securities that a firm has the intent and ability to hold until they mature rather than trading them.

Trading Securities

Financial instruments bought and held primarily for selling in the near term to profit from price changes.

Unrealized Gain (Loss)

The increase (gain) or decrease (loss) in the value of investments that a company holds, which have not yet been sold for a profit or a loss.

Long-Term Investments

Assets intended to be held for more than one year, including stocks, bonds, real estate, and other securities.