As a Developing Country Passes Through the Demographic Transition

question 9

Multiple Choice

As a developing country passes through the demographic transition,

• A)its age structure changes but its growth rate remains unchanged.
• B)its birth and death rates decrease simultaneously.
• C)its growth rate first falls but later recovers.
• D)first its birth rate decreases, followed by its death rate.
• E)first its death rate decreases, followed by its birth rate.

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Definitions:

Maturity

The date on which the principal amount of a financial instrument, such as a bond or loan, becomes due and payable.

Bond Portfolios

Collections of bonds held by investors or institutions, designed to achieve certain financial goals while managing risk and return.

Indexing

The investment strategy of replicating the performance of a market index, often through passive fund management.

Duration

A measure of the sensitivity of the price of a bond or a fixed income portfolio to changes in interest rates.