Countries without well-developed financial systems are able to sustain high levels of economic growth.

Question

Quizplus · Accepted Answer

Countries without well-developed financial systems may face challenges in attracting investment, mobilizing savings, allocating resources efficiently, and managing financial risks, which can impede economic growth in the long run. While some of these countries may experience short-term growth spurts fueled by external factors such as natural resource booms or foreign aid inflows, sustained and inclusive growth typically requires a sound financial system that can support private sector development and innovation, facilitate trade and investment flows, and provide basic financial services to households and small businesses.

Countries Without Well-Developed Financial Systems Are Able to Sustain High