Which of the Following Statements Is Correct

question 54

Multiple Choice

Which of the following statements is correct?

• A) Saving is high in less-developed nations because the opportunities for consumption are limited.
• B) For developing nations, the annual rate of population increase is about 5 percent.
• C) Most of the labor forces of developing nations are engaged in light industrial production.
• D) Investment is low in developing nations, making it difficult to increase productivity and incomes.

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Definitions:

Simple Interest

A method to calculate interest charges on a loan or investment based on the original amount (principal) and the interest rate, but the interest does not accumulate or compound.

Maturity Value

The total amount that will be received by an investor at the end of a bond's term or a deposit's duration, including both the principal and interest.

Term Deposit

A banking term for a fixed-term investment held at a financial institution where money is locked in for a certain period of time, earning a specified interest rate.

Simple Interest

Interest calculated only on the principal amount, or original sum borrowed or invested, without compounding.