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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