For a Developing Country, a _____ Can Foster Economic Instability

question 143

Multiple Choice

For a developing country, a _____ can foster economic instability because it can result in a lending boom and ______ by banks, which promotes a financial crisis.

• A) capital inflow, excessive risk taking
• B) capital inflow, inadequate risk taking
• C) capital outflow, excessive risk taking
• D) capital outflow, inadequate risk taking

---

Definitions:

Payroll Register

A document that summarizes the wages, deductions, and net pay for all employees for a specific payroll period.

Deductions

Amounts subtracted from gross income or revenue to determine taxable income, which can include expenses, allowances, and exemptions.

Contingent Liabilities

Liabilities that could arise based on the result of an upcoming event.

Future Event

An occurrence or situation that has not yet happened but is expected or likely to occur.