Why Are Rotating Credit Associations Common in Societies with a Traditional

question 7

Multiple Choice

Why are rotating credit associations common in societies with a traditional sharing system?

• A) You are obliged to help when others ask for money, so it's easier to save if you have an obligation to save for your contribution.
• B) Rotating credit associations are by nature an altruistic venture, with individual contributors receiving little in return.
• C) Societies with traditional sharing systems rarely have formal banking institutions, so there is no alternative way to save money.
• D) Rotating credit is a complex version of generalized reciprocity, which has its roots in traditional sharing systems.

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Definitions:

$5 Par Value

A nominal or face value assigned to a share of stock, in this case, set at five dollars, used in certain financial calculations and legal paperwork.

$18 Per Share

A specific price value assigned to individual shares of stock, indicating the cost or value of a single share at a particular moment.

Treasury Stock

Shares that were once a part of the outstanding shares and have been repurchased by the company.

Resold

The action of selling an item that has previously been sold or transferring ownership from one party to another.