One Possible Reason for Slower Growth in Developing and Transition

question 68

Multiple Choice

One possible reason for slower growth in developing and transition countries is

• A)capital may not be directed to its most productive use.
• B)strict accounting standards are too stringent for the banks to meet.
• C)the weak link between government and financial intermediaries.
• D)the lack of adverse selection and moral hazard problems.

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Definitions:

Future Costs

Costs that will be incurred in the future as a result of current decisions or plans.

Alternatives

Different options or strategies available to be chosen in decision-making processes.

Future Costs

These are costs expected to be incurred in the future as a result of current or future actions.

Alternatives

Different options or strategies available for achieving a specific goal or solving a problem.