It Is Generally Agreed That Wealth-Substitution Is a Powerful Tool

question 36

True/False

It is generally agreed that wealth-substitution is a powerful tool in the fight to reduce poverty in less-developed nations.

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Definitions:

Stock Market

A public market for the trading of company stocks and other securities, often considered a reflection of the economic strength of a country.

New Stock Issue

The release of additional shares by a company to the public for the purpose of raising capital.

Expansion

The phase of the business cycle where economic activities and production levels increase, leading to growth in GDP and employment.

Indexed Equity Mutual Fund

An equity mutual fund that holds a portfolio of stocks that matches their share (or weight) in a broad stock market index such as the S&P 500. The overhead of these funds is usually quite low because their expenses on stock trading and research are low.