Assume That the Consumer Price Index in 2016 Was 120

question 11

Multiple Choice

Assume that the consumer price index in 2016 was 120 and in 2017 it was 126.What was the rate of inflation in 2017?

• A)3%
• B)5%
• C)6%
• D)20%
• E)26%

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Definitions:

Dividend-Payout Policies

Corporate strategies determining the size and timing of dividend payments to shareholders.

Month of May

The fifth month of the year in the Gregorian calendar, associated with spring in the northern hemisphere and autumn in the southern hemisphere.

Put Option

A financial contract allowing the holder to sell a stock, bond, commodity, or other asset at a specified price within a certain period.

Writer

In finance, it refers to the seller of an option contract, who is obligated to buy or sell the underlying asset if the option is exercised.