econ
Quiz yourself by thinking what should be in
each of the black spaces below before clicking
on it to display the answer.
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| . Commercial banks, financial intermediation | The more financial dev. occurs, the more the ability of the financial system to perform its second major function can happen. It involves gathering savings and channeling it into a sml amount of investors. In early stages, these go to commerical banks.
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| Hyperinflation, government budget deficit | Hyperinflation created by the excess of the creation of money, have a strong correlation to GBD
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| Inflation tax, forced savings |
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| Pegged exchange rate, floating exchange rate |
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| Foreign aid, nonconcessional assistance |
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| Commitment to development index, foreign aid |
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| Aid dependency, aid agencies |
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| External transfer problem, internal transfer problem |
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| Insolvent borrower, illiquid borrower |
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| Fixed exchange rates, capital mobility |
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| . Liquidity, solvency |
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| . Stabilization, structural adjustment |
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| Debt overhang, HIPC |
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| Debt service ratio, sovereign debt |
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| Permanent-income hypothesis, signalling effect |
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| Net barter terms of trade, income terms of trade ( |
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| Tradable goods, primary exports |
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| Dutch disease, real exchange rate |
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