Why do financial access and constraints differ

Reference no: EM132174591

Question: 1. Microfinance has spread very quickly in low-income countries. However, poor households in relatively high-income countries also lack access to financial services at reasonable prices. Why do financial access and constraints differ between low and high-income countries?

2. Consider an American investor based in New York City. She is attempting to diversify her portfolio across countries. Explain why investing in Kenya or Bolivia might seem riskier than investing in her own country. Contrast this scenario with the choice that a commercial bank manager faces when deciding to lend to high and low-income individuals within her own country.

Reference no: EM132174591

Questions Cloud

Discuss the data collection tool and possible analyses : Quantitative Research Methods - UU-DOC-801 - identify the research questions that are relevant to your purpose of research, outline and discuss the data

Statements is true about using separation strategy : Which of the following statements is true about using the separation strategy? Which of the following is true about organizational culture?

The most controversial aspects of management : Control is one of the most controversial aspects of management. Exercising too much control can foster employee resentment and bureaucratic delays.

Draw the production possibilities frontier for each country : Suppose Russia and Sweden each produce only paper and cars. Russia can produce 8 tons of paper or 4 million cars each year. Sweden can produce 25 tons of paper.

Why do financial access and constraints differ : Microfinance has spread very quickly in low-income countries. However, poor households in relatively high-income countries also lack access.

Guidelines for personal development plan : What areas do you need to work on to be a more effective leader? Guidelines for Personal Development Plan.

What is osteoporosis : What is osteoporosis? Common Signs and symptoms seen Screening assessment tools

Why the marginal return to capital might be high : Recall the concept of marginal returns to capital. When the shape of the production function is "conveniently" concave, how does this concept factor.

Defining how credit markets can be inefficient : Take the example of a poor individual who does not have any collateral, and therefore cannot obtain a loan from a standard commercial bank.

User Account

All Pages