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Which of the Following Traits Would NOT Be Used Correctly

question 137

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Which of the following traits would NOT be used correctly to describe the operation of a socialist economy?


Definitions:

Interest

The cost incurred for the benefit of borrowing funds, usually presented as a yearly percentage rate.

Risk Averse

The tendency of individuals to prefer certainty over uncertainty, avoiding risks where possible, especially in financial decisions.

Dividend

A portion of a company's earnings distributed to its shareholders.

Interest Rate

The percentage at which interest is paid by a borrower for the use of money that they borrow from a lender or the rate earned on a deposit or investment.

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