The Type of Legal System in a Country and the Level

question 52

Multiple Choice

The type of legal system in a country and the level of corruption in a country have been found to be:

• A) unrelated to the rate of economic growth in a country.
• B) significant determinants of the rate of economic growth in a country.
• C) important topics for political discussion,but not economic explanations of growth.
• D) important variables explaining the Golden Rule level of capital.

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Definitions:

Securitization

The process of converting assets, often illiquid, into marketable securities.

Structured Entity

A legal entity with a specific purpose, restricted operations, and a limited scope of activities, often created for securitization, investment, or to hold assets.

Receivables

Money owed to a company by customers or clients for goods or services that have been delivered or used but not yet paid for.

Cost Method

An accounting approach used for recording investments, where the investment is recorded at its acquisition cost without any subsequent change in its value unless there is an impairment or disposal.