The Gini Ratio Is Calculated by Dividing the Area Between

question 226

Multiple Choice

The Gini ratio is calculated by dividing the area between the Lorenz curve and the diagonal by the

• A) remaining area below the diagonal.
• B) total area below the diagonal.
• C) total area of the box or rectangle.
• D) remaining area of the box or rectangle.

---

Definitions:

Types of Saving

Various forms in which individuals or entities can save their money, such as bank deposits, investments, or pension funds.

Corporate Bonds

Debt securities issued by corporations to fund their operations, expansions, or projects, carrying a promise to return the principal along with agreed-upon interest payments.

Bondholders

Individuals or entities that hold debt securities issued by corporations or governments, entitled to receive interest payments and the return of principal.

Stockholders

Individuals or entities that own shares in a corporation, giving them partial ownership of the company.