Since 2010, the Interest Rate on Passbook Accounts and Certificates

question 43

Multiple Choice

Since 2010, the interest rate on passbook accounts and certificates of deposit has

• A)been less than the rate of inflation.
• B)has closely tracked the rate of inflation.
• C)exceeded the rate of inflation by 1.5% on average.
• D)fluctuated widely.

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Definitions:

Equity Method

An accounting technique used for recording investments in associated companies where the investor has significant influence but does not control the company outright.

Voting Stock

Shares that give the shareholder the right to vote on matters of corporate policy and the election of the board of directors.

Dividend Revenue

Dividend revenue is income received from owning shares in a company that pays dividends.

Long-Term Investment

Investments in securities or other assets that a company intends to hold for a period exceeding one year to earn revenue or influence business operations.