Which of the Following Is Not True for Banks in Developing

question 13

Multiple Choice

Which of the following is not true for banks in developing countries?

• A)Banks are often viewed with suspicion.
• B)Many bank depositors withdraw their funds at the first sign of economic problems.
• C)Banks cannot make loans for extended periods because they cannot rely on a continuous supply of deposits.
• 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 percentage of total output is one-fifth of that in high-income countries.

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Definitions:

Initiated

The state of having begun or started something, often referring to projects, actions, or processes.

Top Management

The highest level of executives in an organization, including titles such as CEO, CFO, and others, responsible for overall strategy and policy.

Challenging Yet Believable

Tasks or goals that are difficult and stretch abilities but still within the realm of achievability.

Provokes Skepticism

Something that induces doubt or a questioning attitude, often due to inconsistencies or lack of evidence.