When Preparing a Price Index Based on Multiple Products,if the Price

question 122

Multiple Choice

When preparing a price index based on multiple products,if the price of each product is weighted by the quantity of the product purchased in a given period of time,the resulting index is called ___________ price index.

• A)Paasche
• B)Weighted aggregate
• C)Laspeyres
• D)Cyclical (seasonal)

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Definitions:

Treasury Stock

Stocks that the original issuing company has repurchased, decreasing the total number of shares available for trade in the public market.

Par Value

The nominal or face value of a bond, share of stock, or coupon as stated by the issuer, which does not necessarily reflect market value.

Cumulative

Relating to an amount that has been gathered or accumulated over time, often used in the context of dividends or other financial aggregates.

Preferred Stock

A type of equity security that has a higher claim on a company's assets and earnings than common stock, often paying fixed dividends.