Which Is NOT TRUE

question 7

Multiple Choice

Which is NOT TRUE?

• A) Most less developed countries suffer from a lack of capital.
• B) Increasing the amount of arable land is a strategy for development.
• C) Barriers to saving and investing are often high in less developed countries.
• D) Many less developed countries suffer from capital flight.
• E) Less developed countries lack investment opportunities comparable to those opportunities in developed countries.

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Definitions:

Compound Semi-Annually

Interest on an investment or loan is calculated twice a year, with each calculation adding the accrued interest to the principal for future interest computation.

Strip Bond

A debt security that has had its main components, such as periodic interest payments, separated, leaving only the principal to be repaid at maturity.

Discount Rate

The interest rate charged by central banks to commercial banks for loans and advances, influencing monetary policy and overall economy.

Compounded Semi-Annually

Interest calculation method where interest is added to the principal twice a year, leading to interest on interest.