Which of the Following Is the Significance of a Country's

question 129

Multiple Choice

Which of the following is the significance of a country's price index?

• A)It helps in measuring changes in the nominal interest rate in a country.
• B)It helps in measuring the total disposable income of a country.
• C)It helps in determining a country's real GDP each year.
• D)It helps in measuring changes in the prices of only luxury goods.
• E)It helps in measuring the demand for goods and services exported by a country.

---

Definitions:

Required Return

The minimum annual percentage earned by an investment that will induce individuals or companies to put their money into a particular project or investment.

Small Stock Dividend

A dividend paid in the form of additional shares, typically representing less than a 25% increase in outstanding shares.

Capital In Excess

Funds received by a company from issuing shares that exceed the par value of the shares.

Debt-Equity Ratio

A financial ratio indicating the relative proportion of shareholders' equity and debt used to finance a company's assets, often used to assess the company's financial leverage.