If central banks could not create money, developing countries:
A)could still finance their expenditures by simply raising taxes.
B)could still finance their expenditures by issuing bonds.
C)would find it very difficult to finance their current expenditures.
D)could not finance any of their expenditures.

Question

Quizplus · Accepted Answer

Without the ability to create money, developing countries would struggle to finance expenditures due to limited access to capital markets and challenges in raising sufficient tax revenue.

If Central Banks Could Not Create Money, Developing Countries