The Poverty Line Is Described by Which of the Following

question 7

Multiple Choice

The poverty line is described by which of the following?

• A) It is a dollar figure. When a household income is equal to or less than this figure, the household is not considered to be poor.
• B) It is a dollar figure above which a household's income is considered to be in the poor category.
• C) In 2010 in the United States, the poverty line for a family of four was an income of $22,314.
• D) The poverty line is the same for all family sizes.

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Definitions:

Compounded Semiannually

Interest calculated twice per year, with the first period's interest being added to the principal before the second period's interest is calculated.

Strip Bond

A financial instrument obtained by separating the coupons from the principal of a bond, which then sells each part as a zero-coupon bond.

Semi-Annually Compounded

Pertaining to the interest calculation method where the interest is compounded and added to the principal amount twice a year.

Compounded Annually

The process of earning interest on both the initial principal and the accumulated interest from previous periods on an annual basis.