Dependency Theory Holds That, for the Most Part, Poor Countries

question 85

Multiple Choice

Dependency theory holds that, for the most part, poor countries are poor because they

• A)are products of a colonial past.
• B)resist free-market principles.
• C)lack the work ethic to thrive in the modern economy.
• D)have few natural resources.

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Definitions:

Market Rate of Interest

The prevailing rate of interest available in the market for investments of comparable risk and term.

Bond Indenture

A legal contract outlining the terms and conditions between the bond issuer and the bondholders.

Convertible Feature

A characteristic of some bonds or preferred stocks that allows them to be converted into a specified number of common shares, usually at the discretion of the holder.

Floating-rate Bond

A bond whose interest payments vary with market interest rates, as opposed to a fixed-rate bond.