One reason China has been able to grow so rapidly even though its financial development is still in its early stages is

One reason China has been able to grow so rapidly even though its financial development is still in its early stages is

A) the high savings rate of around 40%.
B) the shift of labor to the agricultural sector.
C) the stringent enforcement of financial contracts.
D) the ease of obtaining high-quality information about creditors.

Answer: A

Learn More :

MB Chapter 8

• Factors likely to cause a financial crisis in emerging market countries include
• Argentina's financial crisis was due to
• Factors that led to worsening conditions in Mexico's 1994-1995 financial markets, but did not lead to worsening financial market conditions in East Asia in 1997-1998 include
• Factors that led to worsening financial market conditions in East Asia in 1997-1998 include
• Factors that led to worsening conditions in Mexico's 1994-1995 financial markets include
• An important factor leading up to the Mexican financial crisis of 1994-1995 was
• In recent years, a number of developing and transition countries have experienced financial crises, the most dramatic of which was the
• In emerging economies such as Argentina, government fiscal imbalances may cause fears of
• Adverse selection and moral hazard problems increased in magnitude during the early years of the Great Depression as
• A substantial decrease in the aggregate price level that reduces firms' net worth may stall a recovery from a recession. This process is called
• Debt deflation occurs when
• The sequence of events in a U.S. financial crisis is ________ leading to ________ leading to ________.
• If the anatomy of a financial crisis is thought of as a sequence of events, which of the following events would be least likely to be the initiating cause of the financial crisis?
• If the anatomy of a financial crisis is thought of as a sequence of events, which of the following events would be least likely to be the initiating cause of the financial crisis?
• Most major financial crises in the United States have begun with
• A bank panic can lead to a severe contraction in economic activity due to
• In a bank panic the source of contagion is the
• In addition to having a direct effect on increasing adverse selection problems, increases in interest rates also promote financial crises by ________ firms' and households' interest payments, thereby ________ their cash flow.
• Factors that lead to worsening conditions in financial markets include:
• One reason financial systems in developing and transition countries are underdeveloped is
• The Global Legal Settlement of 2002 required investment banks to separate ________ and ________.
• The Sarbanes-Oxley Act of 2002 increased supervisory oversight by
• The practice of ________ is allocating initially underpriced initial public offerings to executives in companies the investment bank hopes to do underwriting business with in the future.
• Because conflicts of interest increase asymmetric information problems

Share this

Share on FacebookPlus on Google+