"The Poor Stay Poor, Not Because They're Lazy but Because

question 25

Multiple Choice

"The poor stay poor, not because they're lazy but because they have no access to capital." This statement provides the philosophical basis for which development strategy?

• A) Establishment of the United Nations Children's Fund
• B) Establishment of Microcredit programs
• C) Reversing the flow of global funds so that is moves from highly developed to developing countries
• D) Increasing the number of trained professionals in developing nations
• E) Raising the status of women in developing nations

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Definitions:

Preferred Stock

A type of ownership in a corporation that has a higher claim on its assets and earnings than common stock, typically with dividends that must be paid out before dividends to common stockholders.

Rate Of Return

A measure of the profit or loss of an investment over a specified period, expressed as a percentage of the investment's initial cost.

Constant Growth

A model assuming a company's dividends will continue to grow at a consistent rate indefinitely.

Dividend

A portion of a company's earnings that is paid to shareholders, usually on a regular basis.