Question 1

Why are women considered to be more credit worthy for micro loans?

Accepted Answer

Women are often considered to be more creditworthy for microloans for several reasons, which are based on both empirical evidence and observations from microfinance institutions around the world. Here are some of the key factors that contribute to this perception:

1. **Repayment Rates**: Studies and statistics have shown that women have higher repayment rates on microloans than men. This is one of the most compelling reasons for microfinance institutions to consider women more creditworthy. Women are seen as more responsible with money and more committed to repaying their debts.

2. **Use of Funds**: Women tend to invest their loan money into their families and communities. They often use the funds to improve household welfare, education for their children, and to enhance their small-scale businesses. This responsible use of funds often leads to sustainable income generation, which improves their ability to repay loans.

3. **Group Lending Models**: Many microfinance institutions use group lending models where a group of borrowers is responsible for each other's loans. Women have been found to excel in these group dynamics, often displaying strong social cohesion and peer support, which leads to better repayment discipline.

4. **Financial Behavior**: Women are generally considered to be more conservative in their financial behavior. They tend to borrow less and save more, and they often prioritize long-term financial stability over short-term gains.

5. **Economic Empowerment**: Empowering women economically can lead to broader social benefits. Women are more likely to reinvest their earnings in their families and communities, leading to improved health, education, and overall well-being. This multiplier effect is a strong incentive for microfinance institutions to lend to women.

6. **Lower Default Risk**: Due to their higher repayment rates and more reliable investment in family and community welfare, women present a lower default risk for lenders. This makes them attractive customers for microfinance institutions.

7. **Social Impact Goals**: Many microfinance institutions have a dual goal of financial sustainability and social impact. Lending to women aligns with these goals, as it not only ensures a good rate of return but also promotes gender equality and the empowerment of women.

8. **Regulatory Support**: In some regions, there may be regulatory incentives for microfinance institutions to lend to women, as part of broader efforts to promote gender equality and economic inclusion.

It's important to note that while these factors contribute to the perception of women being more creditworthy for microloans, individual circumstances vary, and not all women will necessarily fit these generalizations. Additionally, the success of microfinance initiatives also depends on the broader economic, cultural, and legal context in which they operate.

Question 2

Currency substitution means

Accepted Answer

A) use of money instead of barter. 
B) use of countertrade instead of money. 
C) use of foreign exchange instead of domestic currency. 
D) all of the above. 
E) none of the above. 
A) use of money instead of barter. 
B) use of countertrade instead of money. 
C) use of foreign exchange instead of domestic currency. 
D) all of the above. 
E) none of the above. C

Question 3

Describe the costs and benefits of privatization of state-owned enterprises.In which cases would privatization seem most advisable?

Accepted Answer

Privatization of state-owned enterprises can have both costs and benefits.

Costs:
1. Job Loss: Privatization can lead to job losses as private companies may streamline operations and cut down on excess workforce.
2. Loss of Government Revenue: State-owned enterprises contribute to government revenue through taxes and dividends. Privatization may lead to a loss of this revenue stream.
3. Potential for Monopoly: Privatization can lead to the creation of monopolies in certain industries, which can be detrimental to consumers.

Benefits:
1. Efficiency: Private companies are often more efficient in their operations, leading to improved productivity and profitability.
2. Innovation: Privatization can lead to increased innovation and investment in technology and processes.
3. Competition: Privatization can introduce competition in industries that were previously monopolized by state-owned enterprises, leading to better quality and lower prices for consumers.

Privatization may seem most advisable in cases where state-owned enterprises are inefficient, unprofitable, or facing financial distress. Additionally, industries that require innovation and competition, such as telecommunications, energy, and transportation, may benefit from privatization. However, careful consideration should be given to the potential social and economic impacts, and appropriate regulations should be in place to prevent the negative consequences of privatization.

Question 4

In 1995-7,tax revenue as a percent of GDP

Accepted Answer

A) was roughly equal between developing and developed countries. 
B) was a few percentage points higher for developed than for developing countries. 
C) was a few percentage points lower for developed than for developing countries. 
D) was much higher (approximately double)for developed countries than for developing countries. 
E) was much higher (approximately double)for developing countries than for developed countries. 
A) was roughly equal between developing and developed countries. 
B) was a few percentage points higher for developed than for developing countries. 
C) was a few percentage points lower for developed than for developing countries. 
D) was much higher (approximately double)for developed countries than for developing countries. 
E) was much higher (approximately double)for developing countries than for developed countries.

Question 5

In what ways do the actual and potential roles of central banks differ between developed and developing countries?

Accepted Answer

Discussed

Question 6

When it comes to the composition of tax revenues from different sources,

Accepted Answer

A) developing countries derive the largest portion of their revenue from income taxes and developed countries from consumption taxes. 
B) developing countries derive the largest portion of their revenue from consumption taxes and developed countries from income taxes. 
C) both developing countries and developed countries derive the largest portion of their revenue from income taxes. 
D) both developing countries and developed countries derive the largest portion of their revenue from consumption taxes. 
A) developing countries derive the largest portion of their revenue from income taxes and developed countries from consumption taxes. 
B) developing countries derive the largest portion of their revenue from consumption taxes and developed countries from income taxes. 
C) both developing countries and developed countries derive the largest portion of their revenue from income taxes. 
D) both developing countries and developed countries derive the largest portion of their revenue from consumption taxes.

Question 7

A development bank

Accepted Answer

A) accepts deposits from the poor. 
B) makes loans for industry expansion. 
C) is an agency such as the World Bank. 
D) all of the above. 
E) none of the above. 
A) accepts deposits from the poor. 
B) makes loans for industry expansion. 
C) is an agency such as the World Bank. 
D) all of the above. 
E) none of the above.

Question 8

Which of the following is an objective of macroeconomic stabilization?

Accepted Answer

A) eliminating current account deficits. 
B) controlling inflation. 
C) restoring fiscal balance. 
D) all of the above. 
A) eliminating current account deficits. 
B) controlling inflation. 
C) restoring fiscal balance. 
D) all of the above.

Question 9

What are the major market failures that imply a potential role for state intervention in financial markets?

Accepted Answer

Described in the sec

Question 10

What are some of the major characteristics of financial repression? To what degree may financial liberalization be expected to address the issue of inadequate saving?

Accepted Answer

Discussed

Question 11

Discuss the pros and cons of the recent introduction and expansion of stock markets in the developing countries.

Accepted Answer

Discussed

Question 12

How can joint liability lower the interest rate for micro borrowers.

Accepted Answer

Discussed in the cha

Question 13

Explain how group lending works.

Accepted Answer

Discussed

Question 14

Compare and contrast the workings of the organized and unorganized money markets in developing countries.

Accepted Answer

Discussed

Question 15

What are the key elements that need to be considered in developing an optimal sequence of financial sector liberalization? Will the order differ across countries? Why or why not?

Accepted Answer

Depends on

Question 16

Macroeconomic stabilization involves

Accepted Answer

A) reduction of inflation. 
B) reduction of government budget deficits. 
C) reduction of trade deficits. 
D) all of the above. 
E) none of the above. 
A) reduction of inflation. 
B) reduction of government budget deficits. 
C) reduction of trade deficits. 
D) all of the above. 
E) none of the above.

Question 17

Among the benefits of privatization of state owned enterprises is

Accepted Answer

A) increased employment. 
B) improved efficiency. 
C) reduced pollution. 
D) all of the above. 
E) none of the above. 
A) increased employment. 
B) improved efficiency. 
C) reduced pollution. 
D) all of the above. 
E) none of the above.

Question 18

Why do NGOs target women borrowers while making micro loans?

Accepted Answer

Discussed in the cha

Question 19

One of the characteristics of financial repression is

Accepted Answer

A) negative real interest rates. 
B) lack of credit rationing. 
C) capital flowing to the highest rate of return. 
D) all of the above. 
E) none of the above. 
A) negative real interest rates. 
B) lack of credit rationing. 
C) capital flowing to the highest rate of return. 
D) all of the above. 
E) none of the above.

Question 20

Does it matter how much a developing country saves? Explain why or why not.Discuss theoriesand evidence on whether developing countries can increase the net savings rate in the economy through public policy.In particular,consider whether this can be accomplished through increasedor decreased taxation of one or more types,and increased or decreased government spending ofone or more types.

Accepted Answer

Requirements for stu

Why are women considered to be more credit worthy for micro loans?

Currency substitution means

Describe the costs and benefits of privatization of state-owned enterprises.In which cases would privatization seem most advisable?

In 1995-7,tax revenue as a percent of GDP

In what ways do the actual and potential roles of central banks differ between developed and developing countries?

When it comes to the composition of tax revenues from different sources,

A development bank

Which of the following is an objective of macroeconomic stabilization?

What are the major market failures that imply a potential role for state intervention in financial markets?

What are some of the major characteristics of financial repression? To what degree may financial liberalization be expected to address the issue of inadequate saving?

Discuss the pros and cons of the recent introduction and expansion of stock markets in the developing countries.

How can joint liability lower the interest rate for micro borrowers.

Explain how group lending works.

Compare and contrast the workings of the organized and unorganized money markets in developing countries.

What are the key elements that need to be considered in developing an optimal sequence of financial sector liberalization? Will the order differ across countries? Why or why not?

Macroeconomic stabilization involves

Among the benefits of privatization of state owned enterprises is

Why do NGOs target women borrowers while making micro loans?

One of the characteristics of financial repression is

Introducing Economic Development: a Global Perspective

Comparative Economic Development

Classic Theories of Economic Growth and Development

Contemporary Models of Development and Underdevelopment

Poverty,inequality,and Development

Population Growth and Economic Development: Causes,consequences,and Controversies

Urbanization and Rural-Urban Migration: Theory and Policy

Human Capital: Education and Health in Economic Development

Agricultural Transformation and Rural Development

The Environment and Development

Development Policymaking and the Roles of Market,state,and Civil Society

International Trade Theory and Development Strategy

Balance of Payments,debt,financial Crises,and Stabilization Policies

Foreign Finance,investment,aid,and Conflict: Controversies and Opportunities

Filters

Exam 15: Finance and Fiscal Policy for Development

Why are women considered to be more credit worthy for micro loans?

Currency substitution means

Describe the costs and benefits of privatization of state-owned enterprises.In which cases would privatization seem most advisable?

In 1995-7,tax revenue as a percent of GDP

In what ways do the actual and potential roles of central banks differ between developed and developing countries?

When it comes to the composition of tax revenues from different sources,

A development bank

Which of the following is an objective of macroeconomic stabilization?

What are the major market failures that imply a potential role for state intervention in financial markets?

What are some of the major characteristics of financial repression? To what degree may financial liberalization be expected to address the issue of inadequate saving?

Discuss the pros and cons of the recent introduction and expansion of stock markets in the developing countries.

How can joint liability lower the interest rate for micro borrowers.

Explain how group lending works.

Compare and contrast the workings of the organized and unorganized money markets in developing countries.

What are the key elements that need to be considered in developing an optimal sequence of financial sector liberalization? Will the order differ across countries? Why or why not?

Macroeconomic stabilization involves

Among the benefits of privatization of state owned enterprises is

Why do NGOs target women borrowers while making micro loans?

One of the characteristics of financial repression is

Introducing Economic Development: a Global Perspective

Comparative Economic Development

Classic Theories of Economic Growth and Development

Contemporary Models of Development and Underdevelopment

Poverty,inequality,and Development

Population Growth and Economic Development: Causes,consequences,and Controversies

Urbanization and Rural-Urban Migration: Theory and Policy

Human Capital: Education and Health in Economic Development

Agricultural Transformation and Rural Development

The Environment and Development

Development Policymaking and the Roles of Market,state,and Civil Society

International Trade Theory and Development Strategy

Balance of Payments,debt,financial Crises,and Stabilization Policies

Foreign Finance,investment,aid,and Conflict: Controversies and Opportunities

Filters