The Highest Effective Rate of Return You Could Earn on Any

question 105

Multiple Choice

The highest effective rate of return you could earn on any of these investments is closest to:

• A)6.250%
• B)6.267%
• C)6.300%
• D)6.310%

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Definitions:

Deflation

A decrease in the general price level of goods and services in an economy over a period.

CPI

The Consumer Price Index (CPI) is a measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care.

Base Year

A specific year against which economic growth, prices, or other economic indicators are measured and compared.

Unemployment Benefits

Payments made by the government or a private insurance company to individuals who are unemployed and actively looking for a job.