A Poverty Trap

question 119

Multiple Choice

A poverty trap:

• A) occurs when poor nations save "too much."
• B) is a self-reinforcing mechanism that causes the poor to stay poor.
• C) occurs when nations devote too much of the budget to foreign aid and not enough to domestic poverty.
• D) is the legislative struggle that occurs when passing poverty-reducing legislation.

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Definitions:

Agency

A relationship where one party, the agent, is authorized to act for another, the principal, in legal or business matters.

Insured

A person or entity covered by an insurance policy, protecting against loss or damage from specific risks or incidents.

Insurance Agent

A professional who sells, solicits, or negotiates insurance policies on behalf of an insurance company or individual.

Loss Occurs

Refers to the moment when a financial loss happens due to an insured event.