Which of the Following Is a Factor Limiting Saving in DVCs

question 43

Multiple Choice

Which of the following is a factor limiting saving in DVCs?

• A) The lack of foreign aid and loans from the World Bank
• B) Governments control the banking system and set low interest rates
• C) The flight of private savings to investments in IACs where there is less risk
• D) Those who do save make their savings available only to their families who use it for consumption

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Definitions:

Services

Economic activities that result in intangible benefits or outputs, such as consulting, banking, or repair work.

Property

Assets owned by a person or a company, encompassing both physical objects and intellectual property.

Life Insurance Proceeds

The money paid to the beneficiaries of a life insurance policy when the insured person passes away.

Gross Income

Total income from all sources before deductions, exemptions, and taxes.