The experiences of Eastern Europe and the former Soviet Union have demonstrated that
A)using private networks in a financial system to channel funds from savers to borrowers is not a good approach.
B)using the government to channel funds from savers to borrowers is not a good approach.
C)the government can be very effective in increasing private saving.
D)savers are usually willing to lend greater amounts than borrowers wish to borrow.

Question

Quizplus · Accepted Answer

The experiences of Eastern Europe and the former Soviet Union showed that using the government to channel funds from savers to borrowers is not a good approach. This approach led to inefficiencies, corruption, and misallocation of resources. Instead, promoting a healthy and competitive financial system that uses private networks to allocate funds is a better approach.

The Experiences of Eastern Europe and the Former Soviet Union