Are weaknesses of financial markets a problem, Business Economics

Assignment Help:

Are weaknesses of financial markets a problem?

Problem:

a. Potential entrepreneurs require funds to finance new projects. Financial institutions, as like banks, are middle men who channel funds through savers to borrowers. Feeble financial markets mean entrepreneurs have limited access to savings and therefore cannot finance investment which increases productive capacity and thus facilitate growth.

b. The poor in specific lack access to traditional formal financial institutions as like banks and that cannot elevate loans for small family businesses.

Implications of financial markets a problem: governments and NGOs to promote microfinance, particularly in the poorest rural areas.


Related Discussions:- Are weaknesses of financial markets a problem

Is industrialisation significant in process of development, Is industrialis...

Is industrialisation significant in the process of development? Industrialisation is considered as a major driver of LDC development. Industrialisation arises while a predomin

Procurement and delivery strategies, The Scenario You have just been app...

The Scenario You have just been appointed as the procurement consultant for a large multinational with operations based in Brisbane. Your superior, the Chief Financial Officer (

Describe the terms inflation-deflation and inflation rate, Describe the ter...

Describe the terms inflation, deflation, and inflation rate and price stability. Inflation and Deflation: a. An increasing aggregate price level is called as inflation.

What are the assumptions of lewis, What are the assumptions of Lewis? ...

What are the assumptions of Lewis? LDCs (Less Developed Countries) have two (dual) economies as: • Rural traditional economic and social practices, which overpopulated, s

Production, The factors that affect the volume of production in economics

The factors that affect the volume of production in economics

Do all developing economies have same underlying problems, Do all developin...

Do all developing economies have same underlying problems? Less developed countries are similar but exceptional. The impact of a problem will vary depending upon circumstances

Monopolistic Competition, Describe the characteristics of Monopolistic Comp...

Describe the characteristics of Monopolistic Competition

Methods of sustaining a competitive advantage, The framework for the assign...

The framework for the assignment should be relevant to the websites you have chosen and should consider one or two of the following: Segmentation methods to meet the needs of

What is mean by stabilization policy, What is mean by stabilization policy?...

What is mean by stabilization policy? Taming the Business Cycle: To decrease the severity of recessions policy efforts undertaken are termed as stabilization policy. a

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd