Countries that lack well-defined property laws and legal structures:
A. will have much lower transaction costs associated with any level of lending.
B. have large secondary financial markets because the primary markets do not exist.
C. will not have any financial markets at all.
D. will not develop as fast economically as counties with clear property rights and a formal legal system.
Answer: D
You might also like to view...
According to this Application, in exchange for the federal government absolving their debts, the states were willing to give up their ability to raise revenue from collecting
A) property taxes. B) income taxes. C) import tariffs. D) all of the above.
The long-run aggregate supply curve illustrates the
A) relationship of the price level and real GDP when the economy is at full employment. B) relationship of the price level and real GDP when the economy is at zero unemployment. C) amount of products producers offer at various prices when money wages and other resource prices are fixed. D) surpluses, shortages and equilibrium level of GDP.
In 1950 there were 16 individuals contributing to Social Security for every one person collecting benefits
a. True b. False
The banking system’s ability to __________ money depends on people re-depositing the money that they receive into the banking system.
a. create b. spend c. save d. grow