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What are the advantages and disadvantages of development banks?

Development banks are specialized financial institutions that offer financial services to countries states local governments and private entities for the purpose of promoting economic development and reducing poverty. They typically provide loans grants and other forms of financial assistance to projects that have a positive impact on society. There are many advantages and disadvantages to using development banks as a source of financing. Advantages: Development banks can provide access to funds at lower interest rates than commercial banks. Development banks can provide technical assistance such as management and financial advice to help businesses grow and develop. Development banks can provide financing for projects that would otherwise not be able to access funds from other sources. Development banks can funnel funds to specific regions industries or sectors which can promote economic growth and reduce poverty. Disadvantages: Development banks can be subject to political pressure and thus may not be able to act independently. Development banks can be slow to respond to changing economic conditions making them less effective in times of economic uncertainty. Development banks may not have the expertise or resources to effectively evaluate and manage the projects they finance. Development banks can be prone to corruption which can lead to misallocation of funds and favoritism. In summary development banks can be a great way to promote economic growth and reduce poverty in developing nations. However it is important to consider the potential risks and disadvantages associated with using a development bank as a source of financing.


What are the advantages and disadvantages of the Asian Development Bank?

because I would like to study the deferences function of the banks


Examples of the banks that is development banks?

Which of the following is an example of a development bank


Infrastructural decay and national development role of banks?

what is infrastructural decay and national development -role of banks what is infrastructural decay and national development -role of banks what is infrastructural decay and national development -role of banks


Disadvantages and advantages of merging banks?

One advantage of merging banks is that the banks share the risk of their money ventures. One of the disadvantages of merging them is that they share the profits of any venture.


Infrastructural decay and national development the role of banks?

i want the answer to _ the role of banks in national development


What are the contributions of commercial banks to the development of Nigeria?

what are the roles of commercial banks to sports development in nigeria


What are the advantages and disadvantages of rural development in Manicaland?

There are many advantages and disadvantages of rural development in Manicaland. One advantage is the community that is built with the development.


What are the disadvantages of community development?

A disadvantage of community development is that there will be more traffic. Another disadvantage of community development is noise, more people, and more crime.


What are the Advantages and disadvantages of a foreign bank in India to an Indian investor?

advantages & disadvantages of foreign banks in India


What is the example of private development bank?

Development Banks are banks that often finance specific national and regional projects (i.e., Inter-American Development Bank, African Development Bank, Asian Development Bank).


What are the disadvantages of private banks?

Private banks will not get any type of government assistance. Most private banks are still closed on many federal holidays.