One of the Factors Contributing to Underdevelopment in the World,including

question 113

Multiple Choice

One of the factors contributing to underdevelopment in the world,including in most African countries,is historical colonization.Which development theory supports this notion?

• A) colonization theory
• B) stage theory
• C) dependency theory
• D) modernization theory

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Definitions:

Credit Default Swaps

Financial derivative contracts that allow an investor to swap or offset their credit risk with that of another investor.

Securitization

The process of converting an asset, often a loan or a group of loans, into a marketable security, typically for raising capital.

Liquidity

The ability to quickly convert assets into cash without significant loss in value, crucial for meeting short-term financial obligations.

Securitized Assets

Financial securities created by pooling various types of contractual debt such as mortgages, loans, and receivables, and selling their related cash flows to third-party investors.