In Developing Countries, It Is Not True That

question 81

Multiple Choice

In developing countries, it is not true that

• A)banks are often viewed with suspicion
• B)at the first sign of economic problems, many bank depositors withdraw their funds
• C)because banks cannot rely on a continuous supply of deposits, banks cannot make loans for extended
• Periods
• D)if financial institutions fail to serve as intermediaries between savers and borrowers, the lack of funds for
• Investment will make growth rates double
• E)the credit provided by banks as a percent of total output is one fifth that in high­income countries

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Definitions:

Indifference Curve

A graphical representation showing different combinations of two goods that provide the same level of utility or satisfaction to the consumer.

Upward Sloping

This term describes a curve that increases in height as it moves from left to right, often used in economics to illustrate the relationship between price and quantity supplied.

Theory of Consumer Choice

An economic framework explaining how consumers make decisions to allocate their resources among various goods and services.

Tradeoffs

The concept of sacrificing one benefit or good in order to gain another, reflecting the necessity of making decisions between competing priorities.