Which of the Following Demonstrates the Contagion Hypothesis of Civil

question 6

Multiple Choice

Which of the following demonstrates the contagion hypothesis of civil war?

• A)A civil war in a country may inspire rebels in a neighboring country.
• B)Civil war is a random event,and clustering is likely to occur over large enough samples.
• C)Good institutions in one country deter the rise of civil war in neighboring countries,even if they have bad institutions.
• D)A rebel group may use a neighboring state as a base of operations.
• E)Radio and television waves often cross national boundaries,spreading the possibility of conflict.

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Definitions:

U.S. Bond Market

The financial market in which U.S. government and corporate bonds are traded, essential for investors looking for debt securities.

Mortgage Bond

A bond for which the corporation pledges certain assets as security. All such bonds are written subject to an indenture.

Debenture

An unsecured bond; as such, it provides no lien against specific property as security for the obligation. Debenture holders are, therefore, general creditors whose claims are protected by property not otherwise pledged.

Premium

The amount by which the price of a financial asset exceeds its intrinsic value or the additional cost above the nominal value, such as in insurance or bonds.