The Gap in Global Income Differences Between Rich and Poor

question 58

Multiple Choice

The gap in global income differences between rich and poor countries has __________ over the past 50 years.

• A) ​continued to widen
• B) ​decreased slightly
• C) ​decreased significantly
• D) ​remained basically the same

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Definitions:

Income Bond

A type of bond that only pays interest if the issuer has sufficient earnings to cover the interest payments.

Protective Covenants

Conditions written into financial agreements that the issuer must follow, such as restrictions on issuing more debt or making capital distributions.

Bondholders

Individuals or entities that own bonds issued by corporations or governments, entitling them to receive fixed interest payments and the return of the principal amount at maturity.

Issuing Corporation

A legal entity that generates and offers securities like stocks or bonds to the public to raise capital.