The Problems Encountered by Transitional Economies Trying to Become Well-Functioning

question 131

Multiple Choice

The problems encountered by transitional economies trying to become well-functioning market economies involve:

• A) eliminating bank checking accounts in favor of paper currency.
• B) taking steps to raise the inflation rate.
• C) expanding private property rights.
• D) eliminating all welfare programs and social safety nets.

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Definitions:

Annually Compounded Rate

The interest rate calculated once per year, taking into account the effect of compounding over that period.

Bank Balance

The total amount of funds in a bank account at a given moment.

Deposited

Placing money into a financial account or institution for safekeeping or to earn interest.

IRA

Individual Retirement Account, a saving account with tax advantages that individuals can use to save and invest long-term.