1) What is the meaning of inflation? a) Rate of decrease in prices over a given period of time. b) Rate of increase in prices over a given period of time. c) Benchmark index of the Singapore Stock market d) A method to track the performance of a group of assets in a standardised way 2) How many companies are listed on the STI? a) 10 b) 15 c) 20 d) 30 3) What are blue chip companies? a) It refers to established, stable and well-recognised corporations. b) It refers to small and medium-sized enterprises.  c) It refers to companies that are listed on the stock exchange. 4) The inflation rate is generally higher than bank deposit rates. True or false? a) True b) False 5) If the STI shows a decrease, this means that the share prices in its basket of stocks are ____________. a) increasing b) decreasing c) constant

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