What Explanation Has Been Put Forth to Explain the Legitimacy

question 44

Multiple Choice

What explanation has been put forth to explain the legitimacy of power in a state organization?

• A) States must provide people with real or rational advantages.
• B) Humans have a natural tendency to follow a dominant leader.
• C) Force and the threat of force are enough pressure to keep people in line.
• D) States are the most efficient system and provide the most benefit to the individual.

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Definitions:

Interest Rate Swap

A financial derivative contract whereby two parties exchange interest rate cash flows, often swapping a fixed rate for a floating rate, or vice versa, to manage exposure to interest rate fluctuations.

Fixed-rate Debt

A type of debt instrument where the interest rate remains constant throughout the life of the borrowing.

Floating-rate Debt

A form of borrowing where the interest rate fluctuates over time based on a benchmark or index rate.

Derivative Instrument

A financial contract whose value is derived from the performance of underlying assets, indices, or interest rates.