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.

---

Definitions:

Special Expertise

Unique skills or knowledge in a particular field, making an individual or organization capable of performing tasks that require specialized understanding.

Quantitative Forecasting

A statistical approach to predict future events or outcomes based on numerical data and analysis.

Statistical Analyses

The process of collecting, reviewing, and interpreting data to make conclusions based on statistical methods.

Top-Level Manager

High-ranking executives responsible for the overall strategic direction and success of an organization, such as CEOs and CFOs.