The Experiences of Eastern Europe and the Former Soviet Union

question 6

Multiple Choice

The experiences of Eastern Europe and the former Soviet Union have demonstrated that

• A)using private networks in a financial system to channel funds from savers to borrowers is not a good approach.
• B)using the government to channel funds from savers to borrowers is not a good approach.
• C)the government can be very effective in increasing private saving.
• D)savers are usually willing to lend greater amounts than borrowers wish to borrow.