While many developing countries have reformed their economies in order to imitate the success of the successful industrial economies, the process remains incomplete and most developing countries tend to be characterized by all of the following EXCEPT
A) seigniorage.
B) control of capital movements by limiting foreign exchange transactions connected with trade in assets.
C) use of natural resources or agricultural commodities as an important share of exports.
D) a worse job of directing savings toward their most efficient investment uses.
E) reduced corruption and poverty due to limited underground markets.

Question

Quizplus · Accepted Answer

The statement mentions that most developing countries tend to be characterized by all of the following EXCEPT. Hence, we have to choose the option that does not fit. Options A, B, C, and D are all characteristics of developing countries as described in the statement. However, option E, which mentions reduced corruption and poverty due to limited underground markets, is not a characteristic of developing countries. In fact, corruption and poverty are often prevalent in developing countries due to the lack of transparency in underground markets.

While Many Developing Countries Have Reformed Their Economies in Order