SIE Exam Question 737: Answer and Explanation

Question: 737

TIPS are indexed to the rate of inflation as measured by which of the following?

  • A. Producer Price Index
  • B. Personal Consumption Expenditures Price Index
  • C. Implicit Price Deflator
  • D. Consumer Price Index

Correct Answer: D

Explanation:

TIPS (treasury inflation-protected securities) are indexed to the rate of inflation as measured by the Consumer Price Index (CPI).

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