Inflation Rate Calculation Quiz

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What is the formula used to calculate inflation rate?

Multiplying the difference between two CPIs by 100 (correct)

Dividing the difference between two CPIs by the previous year's CPI

Adding the two CPIs together

Subtracting previous year's CPI from the current year's CPI

How is inflation rate usually expressed?

As a fraction

As a percentage (correct)

As a fixed amount

As an average

What happens to interest rates when the central bank sets them at a high level?

They remain unaffected

They decrease

They rise (correct)

They fluctuate randomly

How do high interest rates affect borrowing behavior?

Discourage borrowing Signup and view all the answers

What is an economic cycle characterized by?

Fluctuations in economic activity Signup and view all the answers

How do interest rates generally correlate with inflation?

They rise with inflation Signup and view all the answers

What is the primary goal of Personal Financial Planning?

To develop and achieve financial goals Signup and view all the answers

Which of the following is NOT one of the 6 areas of Personal Finance mentioned?

Real Estate Management Signup and view all the answers

What is one of the benefits of Personal Financial Planning?

Better decisions Signup and view all the answers

Why do some people avoid Financial Planning according to the text?

They expect someone else to take care of it Signup and view all the answers

What are some problems associated with poor Financial Planning?

Embarrassment Signup and view all the answers

Which author is associated with the 'FIVE STEPS IN PERSONAL FINANCIAL PLANNING PROCESS' mentioned in the text?

Bajtelsmit Signup and view all the answers

During which phase of the economic cycle is there an increased business investment and more employment opportunities?

Expansion Signup and view all the answers

What is the term used to describe the phase in the economic cycle when growth hits its maximum rate?

Peak Signup and view all the answers

What happens to unemployment during business cycle expansions?

Unemployment decreases Signup and view all the answers

What do economists use to determine the current stage of the economic cycle?

Interest rates Signup and view all the answers

What is the term for a phase in the economic cycle characterized by reduced business investment and increasing unemployment?

Depression Signup and view all the answers

What happens to inflation during business cycle expansions?

Inflation increases Signup and view all the answers

What does personal financial planning involve?

Developing and implementing a comprehensive plan to meet financial goals Signup and view all the answers

Which of the following is true about finance?

Involves determining and evaluating cash flows and assets Signup and view all the answers

What is the main focus of personal finance?

Studying individual and household financial decisions Signup and view all the answers

How can personal finance impact an individual's life?

By influencing attitudes towards money and financial habits Signup and view all the answers

What is the key aspect of understanding personal finance?

Recognizing good financial habits Signup and view all the answers

What is the essence of finance as discussed in the text?

Evaluation of cash flows and various assets Signup and view all the answers

Which scholars view civil unrest as a sign of political instability?

Alesina and Perotti Signup and view all the answers

What do global problems, according to the text, specifically refer to?

Problems that affect the entire planet and potentially all its inhabitants Signup and view all the answers

How is the political situation in a country defined as stable or unstable, based on the text?

By different definitions of political stability Signup and view all the answers

Which of the following is NOT listed as a global issue in the text provided?

Climate Change Signup and view all the answers

What is one of the strategies mentioned for making effective decisions in the text?

Applying marginal reasoning Signup and view all the answers

Which scholars consider a change of government as an indicator of political instability?

Miljkovic and Rimal Signup and view all the answers