-In the Above Figure, If the Lorenz Curve Were to Move

question 345

Multiple Choice

-In the above figure, if the Lorenz curve were to move closer to the diagonal line containing points b and c, the income distribution would be

• A) more unequal.
• B) more equal.
• C) unchanged.
• D) More information is needed to determine how this change would affect the income distribution.

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Definitions:

Depositary Bank

A financial institution that holds and manages the securities of a depositor, facilitating the exchange of securities and related transactions.

Payor Bank

A bank that is responsible for paying a check or draft on behalf of its client.

UCC

Short for Uniform Commercial Code, a set of laws that provide legal rules and regulations governing commercial or business dealings and transactions in the United States.

Cashier's Check

A cashier's check, which is underwritten and signed by the bank itself, utilizing its own finances.