SIE Exam Question 145: Answer and Explanation

Question: 145

Of the following terms, which represents simply the value of a country's produced goods and services?

• A. Disintermediation
• B. Gross domestic product (GDP)
• C. Real gross domestic product (RGDP)
• D. Consumer price index (CPI)

Correct Answer: B

Explanation:

The value of a country's produced goods and services is its gross domestic product (GDP). Disintermediation involves investors moving their money from low-yielding investments to higher-yielding ones. The real GDP is a deflation- and inflation-adjusted version of the value of a country's produced goods and services. The consumer price index (CPI) is a tool utilized to measure the rise and fall of overall prices in the country by monitoring the price changes of a specific group of goods and services chosen for their high degree of use in individual lives.