Suppose the Average Value of In-Kind Transfers Increases by $2,000

question 196

Multiple Choice

Suppose the average value of in-kind transfers increases by $2,000 from 2010 to 2011.The poverty rate

• A) is more likely to understate the true level of poverty.
• B) is more likely to overstate the true level of poverty.
• C) will increase by $2,000 divided by the poverty level.
• D) Both b and c are correct.

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Definitions:

Imposter Rule

A legal principle that protects the drawer of a negotiable instrument from being held liable to an impostor or in cases of fraud, provided certain conditions are met.

Presentment Warranties

Legal assurances given when a negotiable instrument (like a check) is presented for payment, concerning the authenticity of the document and the rights of the presenter.

Drawer Is Unauthorized

A statement indicating that the person who has made or drawn a cheque (the drawer) did not have the authority to do so, potentially rendering the cheque invalid.

Unaccepted Draft

A written order to pay a certain amount that has not been accepted or honored by the party it is drawn upon.