Which of the Following Is Most Likely a FALSE Statement

question 34

Multiple Choice

Which of the following is most likely a FALSE statement about income inequality?

• A)The richest 1% of the world's population claims as much income as the bottom 57%.
• B)GNI is the most effective tool for estimating the relative wealth of a nation's citizens.
• C)Among industrialized nations, the United States has the largest inequality gap between rich and poor.
• D)Income inequality between metropolitan and rural areas threatens a country's social stability.

---

Definitions:

Money Market

The money market is a segment of the financial market in which financial instruments with high liquidity and very short maturities are traded, intended for short-term borrowing and lending.

Transaction Motive

The need to hold cash to satisfy normal disbursement and collection activities associated with a firm’s ongoing operations.

Liquidity

Measures the ease with which an asset can be converted into cash without significantly affecting its price.

Speculative Motive

The need to hold cash to take advantage of additional investment opportunities, such as bargain purchases.