For the CPI

question 289

Multiple Choice

For the CPI. the value of the index in the base year

• A) always equals 100.
• B) depends upon price and quantity that are constantly changing.
• C) is always greater than 100.
• D) depends upon what prices did the year before.

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Definitions:

Actuarial Value

A measure of the average amount of benefit a health insurance plan is expected to pay, used to compare different health insurance policies.

Actuary

A professional who analyzes financial risk using mathematics, statistics, and financial theory, mostly in the insurance and pension plan industries.

Expected Return

The anticipated amount of profit or loss an investment generates over a given period of time.

Defined Benefit Plan

A type of pension plan where the employer guarantees a specified pension payment upon retirement, based on the employee's earnings history, tenure of service, and age, rather than directly depending on individual investment returns.