Concentration Banking Allows the Banks to Use the Local Collection

question 25

True/False

Concentration banking allows the banks to use the local collection system to clear the customers' cheques.

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Definitions:

Foreign Aid

Is financial, technical, or material assistance given by one country to another, usually for developmental purposes or humanitarian aid.

Loan Interest

The additional amount charged by a lender to a borrower for the use of borrowed funds, usually expressed as an annual percentage of the principal.

Dependency Theory

Views economic underdevelopment as the result of exploitative relations between rich and poor countries.

Modernization Theory

Holds that economic underdevelopment results from poor countries lacking Western attributes. These attributes include Western values, business practices, levels of investment capital, and stable governments.