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control of credit in a developing country results to a slow rate of the economy at large.
The reason being the fact that, the rate of investment will decrease because investors will cease to advance their developments in the case where they are not allowed to transact in a free manner. Controlling the way credit flows in an economy results to distortion of the operations of investors, which affects the rate investment as well as other major economic activities. This causes an economic slow-down, which is economically unhealthy for any developing or developed country.
What else can I help you with?
What are the weaknesses on credit policy in developing countries?
In credit policy of a developing country like India, the beneficiaries/receipients from whom the credit is meant,only few big farmers/industrialists avail the same due to stringent rules and regulations attached with it. The banks through whom the credits are supposed to be extended, are generally reluctant to help the poor beneficiaries to avail the benefits. Even they get a fraction of the government aids/grants due to red tapism,corruption embeeded with the existing system.
Why has the demand for oil been incresing?
If you have been observing oil prices drop, you might not be asking this question. However, there are short trends and longer ones, and some forecasters expect an increase in demand due to the improving economies of developing countries. So far, the US credit crunch has caused many of these countries to have less robust economies.
List and explain the advantages and disadvantages of buying on credit?
I am not really into that stuff but if you go to other websites you will probably find it
What are three functions of foreign exchange market?
1.Transfer function:Transferring purchasing power between countries. 2.Credit function: providing credit channels for foreign countries 3.Hedging function: Minimizing risk loss
Advantages and disadvantages of credit sales?
I would say that the main advantages and disadvantages of instalmet sales are that they cinsume your money and they let you pay for the things you can't afford or don't have all the money for.
What are some disadvantages for women in Ethiopia?
Women in Ethiopia, as with other developing countries, have a harder lot in life than those of America or other so-called developed countries. Women in Ethiopia cannot own land or obtain credit.
Do the advantages of credit outweight the disadvantages of credit?
With the rampant credit card theft, its disadvantages are becoming more than its advantages.
Are there any major disadvantages to a Chevron credit card?
There are no major disadvantages specific to a Chevron credit card. There are disadvantages inherent in credit cards like annual fees or murky language and varying rates for different usages, but those are potential disadvantages to all credit cards.
What is the advantages and disadvantages of credit policy?
advantages of credit policy
What are the advantages and disadvantages of credit card?
The advantages of a credit card is you can buy things that you don't have the money to buy. The disadvantages of a credit card is that you have to pay it off with interest in the future.
What are the disadvantages of paying with a credit card?
they smell
Disadvantages of using a credit card?
Everything.
What are Advantages and disadvantages of informal credit?
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What has the author Giovanni Dell'Ariccia written?
Giovanni Dell'Ariccia has written: 'The real effect of banking crises' -- subject(s): Bank loans, Bank failures 'Flight to quality or to captivity?' -- subject(s): Econometric models, Developing countries, Banks and banking, Credit control, Bank loans
What are the advantages and disadvantages of card?
The advantages of a credit card is you can buy things that you don't have the money to buy. The disadvantages of a credit card is that you have to pay it off with interest in the future.
What are the disadvantages of using credit cards?
The disadvantages of using credit cards include high interest rates, potential debt accumulation, fees, and the risk of overspending.
What are the disadvantages of having a credit card?
Some disadvantages of having a credit card include the potential for overspending, accumulating debt with high interest rates, and negatively impacting your credit score if payments are missed.
