Is Interest That Is Paid Not Only on the Principal

question 113

Multiple Choice

is interest that is paid not only on the principal, but also on any interest earned but not withdrawn during earlier periods.

• A)basic interest
• B)simple interest
• C)future interest
• D)compound interest

---

Definitions:

Underdeveloped Countries

Countries that have yet to industrialize, or that have been intentionally restricted in their development by developed nations.

Developing Countries

Nations with a lower standard of living, underdeveloped industrial base, and low Human Development Index relative to other countries.

Undeveloped Countries

Countries with poor economies; problematically implies a lack of economic talent or exposure.

Dependency Theory

A theoretical perspective that criticizes the global economic system as perpetuating inequality between developing and developed nations.