Residents of Poor Countries Tend to Have Fewer Automobiles Per

question 116

Multiple Choice

Residents of poor countries tend to have fewer automobiles per capita because

• A) lower per capita real gross domestic product (GDP)growth rates allow for less spending on automobiles.
• B) residents of poor countries tend to live on farms,where cars are unnecessary.
• C) residents of wealthy countries have automobiles provided to them by the government.
• D) tax rates are higher in poor countries,which leaves less money to spend on cars.
• E) residents of poor countries generally prefer to walk.

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Definitions:

International Currency

Currency that is used and recognized for financial transactions across national borders, often involving major currencies like the US Dollar, Euro, or Japanese Yen.

Capital Flow

The movement of money for the purpose of investment, trade, or business production between countries or within a country.

Documentary Letter

A type of credit instrument issued by a bank guaranteeing a seller's payment from a buyer upon presenting specified documents.

Correspondent Bank

A bank that provides services on behalf of another, typically foreign, bank, including currency exchange and handling international transactions.