Last year, a bond yielded a nominal return of 7.37 percent while inflation averaged 3.26 percent. What was the real rate of return?

A) 3.42 percent
B) 3.27 percent
C) 3.98 percent
D) 3.71 percent
E) 3.86 percent


C) 3.98 percent

Business

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Laws that seek to prevent certain practices that might reduce competition and thus increase prices are called ________.

A. contract laws B. consumer laws C. antitrust laws D. tax laws

Business

Allman, Inc, enters into a call option contract with Betts Investment Co on January 2, 2014 . This contract gives Allman the option to purchase 1,000 shares of Upmann stock at $100 per share. The option expires on April 30, 2014 . Upmann shares are trading at $100 per share on January 2, 2014, at which time Allman pays $200 for the call option. Using the information above, the 1,000 shares of

Upmann stock in this contract is referred to as the a. collateral. b. notional amount. c. option premium. d. derivative.

Business

Services are produced and consumed at the same time and cannot be detached from their provider. This characteristic of service is called ________.

A. reliability B. variability C. intangibility D. inseparability E. perishability

Business

Property that the owner leaves somewhere due to negligence, carelessness, or inadvertence is referred to as ________ property

A) abandoned B) real C) lost D) mislaid

Business