The Consumer Price Index Measures The

question 99

Multiple Choice

The consumer price index measures the:

• A) total price of a basket of goods and services bought by a typical consumer.
• B) average price of a basket of goods and services bought by a typical consumer.
• C) total price of a basket of goods and services bought by all families in the country.
• D) average price of a basket of goods and services bought by all families in the country.

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Definitions:

Principal

The original amount of money invested or lent, before interest or earnings are added.

Earn Interest

The process by which money deposited in a savings account or investment grows over time due to the payment of interest.

Months

Units of time measurement that constitute roughly one-twelfth of a year, used in planning and tracking various financial activities.

Interest

The cost of borrowing money or the payment received for lending money, usually expressed as a percentage of the principal.