Lesson #18 Quiz :Financial Markets (Financial Markets) answer 2025

Question 1

What does the term “democratization of finance” mean?

❌ It should benefit the oldest people; not the young.
✅ It should benefit real people; everyone, not just the rich.
❌ It should benefit rich people; not the poor.
❌ It should benefit the youngest people; not the old.

Explanation:
Democratization of finance means making financial services accessible to everyone, including ordinary people—not just wealthy individuals or elites.

Question 2

What is ‘odious’ debt?

❌ Illegitimate debt raised by corporations.
✅ Illegitimate debt raised by government, used for ill purposes against the will of the people.
❌ Standard debt raised by corporations to create new products.
❌ Standard debt raised by government.

Explanation:
Odious debt refers to government debt taken without public consent and used in ways that do not benefit the population.

Question 3

Malthus contended that:

❌ By providing additional workers population growth enhanced development.
✅ Human population can grow faster than food production.
❌ All of the above.
❌ Poverty causes resource depletion rather than the reverse.

Explanation:
Malthus believed population growth could outpace food supply, leading to poverty and famine.

Question 4

Malthus contended that population increased in a ____ ratio and subsistence in an ____ ratio.

❌ arithmetical; linear
❌ linear; geometrical
❌ arithmetical; geometrical
✅ geometrical; arithmetical

Explanation:
Population grows geometrically (exponentially), while food supply grows arithmetically (linearly).

Question 5

What are some reasons that inequality exists? (check all that apply)

✅ Unmanaged risks
✅ Political power
✅ Failure to democratize finance

Explanation:
Inequality persists due to unequal access to financial tools, political influence, and lack of risk protection for vulnerable groups.

🧾 Summary Table