According to a Revised Perspective on Democratic Peace, New Democracies

question 69

Multiple Choice

According to a revised perspective on democratic peace, new democracies are likely to be

• A) more peaceful as they establish democratic practices.
• B) more willing to compromise in order to avoid conflict.
• C) more prone to wage war as they do not have institutions or values based on compromise.
• D) institutionalized with built-in mechanisms leading to negotiations.

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Definitions:

Sweetener

A feature that makes a security more attractive to some investors, thereby inducing them to accept a lower current yield. Convertible features and warrants are examples of sweeteners.

Bankers' Acceptance

A short-term debt instrument issued by a company that is guaranteed by a commercial bank, commonly used in international trade.

Securitization

The process whereby financial instruments that were previously thinly traded are converted to a form that creates greater liquidity. Securitization also applies to the situation where specific assets are pledged as collateral for securities, and hence asset-backed securities are created. One example of the former is junk bonds; an example of the latter is mortgage-backed securities.

Warrants

Financial instruments that give the holder the right, but not the obligation, to buy shares of a stock at a specified price before the warrant expires.