Which of the Following Is a True Statement

question 111

Multiple Choice

Which of the following is a true statement?

• A) Direct foreign investment to DVCs is increasingly provided by commercial banks.
• B) Direct foreign investment to DVCs has dwindled to near zero in recent years.
• C) Approximately 5 percent of the GDP of IACs goes to foreign aid.
• D) Foreign aid from the IACs to the DVCs has greatly expanded in the past several years.

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Definitions:

Annuity Payments

Regular payments made from an investment that was designed to provide an income over a period of time.

RRSP

Registered Retirement Savings Plan, a Canadian government-approved program to help residents save for retirement.

Compounded Annually

The method by which interest is calculated once per year on both the initial principal and the accumulated interest from previous periods.

Compounded Monthly

Compounded monthly refers to the process of accruing interest on an investment or loan where the interest earned is added to the principal amount at the end of each month, allowing the interest to itself earn interest in subsequent months.