Suppose That Last Year,the Price of Strawberries Was $2 and the Price

question 155

Multiple Choice

Suppose that last year,the price of strawberries was $2 and the price of milk was $1.This year,the price of milk is $2 and the price of strawberries is $1.Which of the following statements is true?

• A)The CPI does not change because the change in the two prices is the same.
• B)The CPI increases because milk is more expensive.
• C)The CPI decreases because strawberries are cheaper.
• D)The CPI might increase or decrease depending on the quantities in the CPI market basket.
• E)The change in the CPI depends how the market basket changed between the two years.

---

Definitions:

Discount Taken

The reduction in the amount payable by a debtor to a creditor if the payment is made within a specified period.

BC Prints

This term does not have a widely accepted financial definition. It might be specific to a context or an organization. NO.

DSO

Stands for Days Sales Outstanding, a measure used to calculate the average number of days it takes a company to collect payment after a sale has been made.

Disbursement Float

Disbursement float refers to the time delay between writing a check and the time the funds are actually withdrawn from the payer's account.