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1. Which of the following has returned the highest rate of return on investment
2. Assuming a 4% inflation rate, how long would it take to lose half of your
purchasing power? (A dollar is worth only 50 cents) Hint: Rule of 72
3. In general, a savings account with a bank often cannot make enough interest to
offset the losses from inflation.
4. In general, what happens to bond prices when interest rates go up?
5. Treasury Bonds (T-Bonds) pay a higher interest rate than Treasury Bills
6. What is a bank CD?
7. What is a P/E ratio?
8. What is an income statement?
9. What is a dividend?
10. What is the Dow Jones Industrial Average or DJIA or the Dow?
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