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Banking Infrastructure:
An efficient financial system can influence the long-term growth through three important channels, namely: 1) increase in the proportion of saving transferred to investment spending, 2) augmenting private saving rate, and 3) improvement in the social marginal productivity. The financial intermediaries stimulate economic growth in two ways: (i) by channeling the individual saving into productive areas of development and (ii) by allowing the individuals to reduce risk associated with their liquidity needs. The creation of specialised financial institutions assumes significance in this regard because supply of credit to the poor involves high risk and carries exorbitant interest rates. The task of the special financial institutions would be to identify impediments to enhancing the productivity of existing assets and to find ways and means to overcome these and simultaneously to promote viable economic activities for the rural poor.
explain engineering cost
Determinants of Private Demand - Gender Hypothetically, let us consider a family with two children, a boy and a girl. Let it be that both of them qualify in an entrance exami
Define the Policies of Education Universal education--particularly universal education of girls--pays a two-fold benefit. Investments are more likely to be productive with a be
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Private Returns Versus Social Returns As there is subsidisation of education by the state in all countries (and a little higher subsidisation in developing countries) it happe
what are the sources of monopoly power
STETE THE THEORIES OF DETERMINATION OF RENT
Purchasing power parity: When PPP holds, the domestic currency has the same purchasing power at home and in any other country. PPP also implies that a foreign currency will de
RELATIONSHIP BETWEEN TFC ,TC ,TVC
The Hypothesis of Rational Expectations : In the General Theory (Keynes, 1936) we noted that the state of expectations was taken as given. There was, in addition, explici
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