Which of the Following Statements Best Serves as a Summary

question 110

Multiple Choice

Which of the following statements best serves as a summary of the other statements?

• A)Low income can mean poor nutrition during the formative years, which can retard mental and physical development
• B)Low income and low productivity may reinforce each other in a cycle of poverty
• C)Low productivity obviously results in low income
• D)Low income means less saving and less saving means less investment in human and physical capital
• E)Poverty can result in less education, less capital formation, a poor diet, and little health care

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Definitions:

American Calls

Options contracts that allow the buyer to exercise the option to buy the underlying asset at the strike price at any time before expiration.

Option Expiration

The date on which an options contract becomes void and the holder no longer has rights for which it provides.

Shares

Units of ownership interest in a corporation or financial asset that provide for an equal distribution in any profits, if any are declared, in the form of dividends.

Strike Price

The predetermined price at which an option can be exercised, allowing the holder to buy (in the case of a call option) or sell (in the case of a put option) the underlying security.