Suppose That the Data in the Following Table Reflects the Prices

question 187

Multiple Choice

Suppose that the data in the following table reflects the prices in the economy.What is the inflation rate in between 2017 and 2018? $$\begin{array} { | c | c | } \hline \text { Year } & \text { CPI } \\& ( \mathbf { 1 9 9 0 } = \mathbf { 1 0 0 } ) \\\hline 2017 & 175 \\\hline 2018 & 180 \\\hline\end{array}$$

• A) 5%
• B) 2.9%
• C) 4.6%
• D) 7.5%

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Definitions:

Liquidity

The ease with which an asset can be converted into cash without affecting its market price.

Long-Term Obligations

Financial commitments or debts that are due for repayment beyond the current fiscal year.

Sarbanes-Oxley Act

A U.S. law enacted in 2002 to protect investors from fraudulent financial reporting by corporations.

Internal Controls

Internal controls are processes and procedures implemented by organizations to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.