Question
Refer to the following table that shows the movement of prices during a certain year. Use these approximate values and assume that other price levels
Refer to the following table that shows the movement of prices during a certain year. Use these approximate values and assume that other price levels are stable over the year.
Value at Beginning of Year 1
Value at Beginning of Year 2
S&P/TSX index
15 comma 500
15,500
16 comma 350
16,350
Gold(CAF/oz.)
1150
1150
1306
1306
Average House Price inToronto, $
425 comma 000
425,000
464 comma 000
464,000
Suppose that at the beginning of Year1, a household had $300 comma 000
300,000, which it wanted to hold for use one year later. Determine which of the following would have been a good store of value over that period. (Select all thatapply.)
A.
Stocks whose prices moved with the Toronto Stock Exchange(S&P/TSX) index
B.
Gold
C.
The Canadian dollar
D.
A house whose value changed with the average house price in Toronto
E.
None of the above
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