QUESTION 1 Common stocks usually guarantee a fixed annual payment, or dividend. O True O False QUESTION 2 If the Consumer Price Index was 170 in one year and 180 in the next year, then the rate of inflation from one year to the next was approximately O A. 6.3 percent. O B. 5.5 percent O C. 7.2 percent O D. 5.9 percent QUESTION 3 Bonds represent ownership of a firm, stocks represent a debt owed by a firm to the stockholder O True O False QUESTION 4 If the inflation rate is 4 percent and the nominal interest rate is 7 percent, then the real interest rate equals -3 percent. True False