Which of the Following Descriptions Is Most Characteristic of the World's

question 80

Multiple Choice

Which of the following descriptions is most characteristic of the world's poorest people?

• A)On her way to high school,a young girl walks along a path at the edge of a rice field.
• B)Filling a pot with water from a community water reserve,a mother prepares to make a meal of rice and fish,barely enough to feed her husband and two children.
• C)A thin man in his 80s,smoking a cigarette,makes his way to cast a ballot in a national election.
• D)In a large city,a 12 year-old boy sits under a stack of tin he calls home,unable to read the nearby billboards.

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Definitions:

Compound Interest

Interest calculated on the initial principal and also on the accumulated interest of previous periods of a deposit or loan.

Earnings Rate

The rate at which an individual or corporation is taxed or the speed at which an investment grows.

Present Value Index

A ratio used in capital budgeting to evaluate the profitability of investments by comparing the present value of future cash flows to the initial investment cost.

Compound Interest

Interest that is computed on both the initial amount of the deposit or loan and on the interest that has been added to that principal over past periods.