(Last Word) Early Experiments with Unconditional Cash Transfers Have Revealed

question 245

Multiple Choice

(Last Word) Early experiments with unconditional cash transfers have revealed that

• A) most of these cash transfers are repaid within a very short time.
• B) although the money is usually spent on education and capital, cultural obstacles generally prevent this spending from translating into long-term earnings gains.
• C) a majority of recipients use the money for training and equipment that results in a higher long-term income.
• D) most recipients spend the money on current consumption and realize no long-term gain in earning power.

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Definitions:

Yearly Payment

The amount of money paid or received over the course of a year for any financial transaction or obligation.

Effective Yield

The total yield of an investment after accounting for compounding interest, often expressed on an annual basis.

Perpetuity

A financial term referring to a type of annuity that pays a series of payments indefinitely, with no end.

10-Year Bond

A financial instrument issued by governments or corporations promising to pay back borrowed funds with interest over a ten-year period.