Which of the Following Statements Is True

question 131

Multiple Choice

Which of the following statements is true?

• A) Capital and gross private investment are flow variables.
• B) Capital and gross private investment are stock variables.
• C) Capital is a stock variable while gross private investment is a flow variable.
• D) Capital is a flow variable while gross private investment is a stock variable.

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Definitions:

Short-rate Refund

A method of calculating the refund amount a policyholder receives if they cancel their insurance policy before it expires, which may include a penalty.

Premium Rate

The rate charged for an insurance policy, reflecting the cost of coverage.

Annual Premium

The annual premium is the total amount paid for an insurance policy in a year, covering the policyholder for a specified term.

Coinsurance Clause

An insurance policy clause specifying that, if a property is not insured up to a certain percentage of its value, the owner is the bearer of part of the insurance and will not be covered for the full amount of damages.