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Chapter 9: Q 21. (page 243)

Name several forms of indexing in the private and

public sector.

Short Answer

Expert verified

There are various types of public and private indexing

Step by step solution

01

Step 1. Definition

An index is a method to keep an eye on the performance of a collection of assets in a systematic way. Indexes generally measure the performance of a basket of securities intentioned to copy a certain area of the market.

02

Step 2. 

Forms of public sector indexing are:

1. Social security indexing

2. Indexed bond

Forms of private sector indexing:

1. Cost of living adjustment

2. Adjustable-rate mortgage

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Most popular questions from this chapter

Imagine that the government statisticians who calculate the inflation rate have been updating the basic basket of goods once every 10 years, but now they decide to update it every five years. How will this change affect the amount of substitution bias and quality/new goods bias?

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