In Many Developing and Transition Countries,commercial Banks Are Owned by Their

question 22

Multiple Choice

In many developing and transition countries,commercial banks are owned by their governments. These ________ may have little incentive to allocate their capital to the most productive uses.

• A)state-owned banks
• B)central banks
• C)national banks
• D)federal banks

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Definitions:

Trust Fund

A legal entity set up to hold property or assets for the benefit of another party, often managed by a trustee.

Rate of Return

The upward or downward adjustment in an investment's value through a defined span, represented as a fraction of the investment's initial expense.

Growing Annuity

A finite number of growing annual cash flows.

Cash Flow Growth Rate

The rate at which a company's cash flow increases over a specified period, indicating the health and profitability of the business.