Economic development of an economy, International Economics

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Question:

Banks contribute to the economic development of a country. Banks have always been financing projects that help individuals and enterprises fulfill their plans. However, banks have not always been successful and profitable.

(a) Do you think that banks really help in the economic development of an economy?

(b) Taking examples from two real cases of bank failures analyse why these failures happened and how they could have been avoided, if ever possible.


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