One reason financial systems in developing and transition countries are underdeveloped is
A) they have weak links to their governments.
B) they make loans only to nonprofit entities.
C) the legal system may be poor making it difficult to enforce restrictive covenants.
D) the accounting standards are too stringent for the banks to meet.
C
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If a perfectly competitive market is in long-run equilibrium and there is a permanent decrease in demand, then
A) some firms will incur economic losses. B) firms are no longer maximizing profits. C) some firms must immediately exit. D) each firm must produce less output in the new long run equilibrium and earn less economic profit.
The monetary rule is the view of the:
a. Monetarists that monetary policy is most important. b. Keynesians that monetary policy is most important. c. Classical economists that monetary policy is most important. d. Monetarists that the Fed should expand the money supply at a constant rate.
Suppose government purchases increase by $100 million in an economy, which leads to total output increasing by $500 million. The size of the multiplier is _____
Fill in the blank(s) with the appropriate word(s).
Suppose a tax were imposed on motel rooms in the San Antonio area. If demand were slightly elastic and supply were very inelastic, the tax would be borne
A. entirely by motel owners. B. mainly by motel owners. C. mainly by motel renters. D. entirely by motel renters.