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What Is the Relationship Between Market Failure and Government Failure

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What is the relationship between market failure and government failure?


Definitions:

Alteration

A change or modification made to an object, document, or system, often intended to improve functionality or appearance.

Foreign Draft

A financial instrument used in international trade, drawn by an exporter on a foreign buyer, which orders the payment of a specified amount of money.

Without Recourse

A term indicating that the seller of a financial instrument or commercial paper relinquishes the right to demand payment from the issuer in the case of default.

Cashier's Check

A check issued by a bank, drawn on its own funds rather than that of an account holder, and commonly used to guarantee payment.

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