Which of the following is a requirement for development?
A) an unreliable system of financial institutions
B) a lack of saving by households and firms
C) low confidence in domestic currency
D) low and predictable inflation that encourages saving

Question

Which of the following is a requirement for development?  
A) an unreliable system of financial institutions 
B) a lack of saving by households and firms 
C) low confidence in domestic currency 
D) low and predictable inflation that encourages saving

Quizplus · Accepted Answer

Low and predictable inflation encourages saving, which is a crucial factor in funding development. A lack of saving (option B) hinders development, while an unreliable financial system (option A) and low confidence in domestic currency (option C) lead to economic instability, making development challenging. Therefore, D is the best choice.

Which of the Following Is a Requirement for Development