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Finance and Growth
» Practice Questions
1. Which of the following is NOT a function of finance?
screening and monitoring
2. One role for finance is ____________________, so people can enjoy goods throughout their lifetimes as opposed to consuming everything at discrete periods in time.
3. King and Levine found that financial development in 1960 was a _____________ predictor of economic growth over the next 30 years.
neither a. nor b.
4. Insecure property rights:
tends to help the flow of capital from savers to borrowers
tends to hinder the flow of capital from savers to borrowers
in some cases helps and in some cases hinders the flow of capital from savers to borrowers.