ECON-6152-2013T(UGRD) Economic

Development
Final Quiz 1&2-

Grade 100.00 out of 100.00

By: Casey Collera Mediana

Question 1
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Note : Answers can be used twice.
The process of _________________ involves a series of natural
changes that cause species to arise, adapt to the environment, and Answer 1
become extinct.  Evolution
 
 
Human evolution is the lengthy process of change by which people
originated from ________________ ancestors. Answer 2
Apelike
   

Arthur Lewis' famous economic development with unlimited

Answer 3
supplies of labor emphasized ________________ while ignoring Dualism
the role of economies of scale and circular causation.   
The distinctive features of high development theory came out of its
explanation of the nature of the positive feedback that can lead to Answer 4
_______________________growth or stagnation.  Self-reinforcing
 
 
Forward linkages are also defined by __________________ as
involving an interaction between scale and market size where it
involve the ability of an industry to reduce the costs of potential Answer 5
downstream users of its products and push them over the threshold Hirschman
of profitability.  

 
Scientists classify each species with a unique two-part
____________________________wherein in this system that Answer 6
modern humans are classified as Homo sapiens. Scientific Name
 
 
Human evolution took place as new genetic variations in early
ancestor populations’ favored new abilities to adapt to
environmental change and so altered the Answer 7
___________________and development varies from place to place. Human way of life  
 
Early humans first migrated out of ___________________ into
Asia probably between 2 million and 1.8 million years ago. Answer 8
Africa
   

____________________________involves the creation of theories

and methods that aid in the determination of policies and practices
and can be implemented at either the domestic or international Answer 9
Development economics
level.  
 
Myrdal's effective presentation of the idea of circular and
cumulative causation or _______________________ evocation of
linkages was stimulating and immensely influential in the 1950s Answer 10
Hirschman
and early 1960s.   
 
Question 2
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The _________________now recognize that non-market
Answer 1
interactions are at least as important as market interactions in Development economists
determining the level and distribution of well-being in a society.  
The _________________ as producing stylized facts of structural
change in development. We observe the shift in sector shares, the Answer 2
demographic transition; changes in the nature of trade, and other Chenery approa ch
 
changes that occur as the economy becomes richer.
As ____________________and Dani Rodrik show, this is a
complex task—and one prone to market failure. It is not enough to
tell a developing nation to specialize in “labor-intensive products,”
Answer 3
because even if this were always true, there are a vast number of Ricardo Hausmann
such products in the world economy of today, and underlying costs  
of production of specific products can differ greatly from country
to country.
The implication for LDC’s was that they would have to follow a
different path as well. A modern application of this view is in
Answer 4
________________ of Korea. There are, of course, advantages as Amsden’s analysis
well as disadvantages in a later start. The late industrializers can  
import technology rather than invent it themselves.
__________________ has stressed that: “the central problem in
the theory of economic development is to understand the process
by which a community which was previously saving... 4 or 5 per Answer 5
cent of its national income or less converts itself into an economy Arthur Lewis
 
where voluntary savings is running at about 12 to 15 per cent of
national income or more.
Question 3
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Development macroeconomists have devoted considerable effort to
theorizing about and empirically investigating a relation, especially
the dynamic effects of ___________________________ on growth Answer 1
Trade
and poverty.   
 
The main theory induced innovation model of Hayami and Ruttan
(1971) and Binswanger and Ruttan (1978) explained that under the
induced innovation hypothesis, _________________ are guided by Answer 2
Technical Innovations
changes in relative incentives.  
 
There are two channels through which financial sector development
can impact poverty reduction. One works indirectly through
__________ and the other works directly through the poor Answer 3
Growth
benefiting from accessing financial services.   
 
Jacoby finds that even without the observable motivation of market
wages, ________________allocation appears to respond robustly to
marginal productivity, as theory suggests it should. What Answer 4
sometimes appears as sluggish responsiveness to incentives merely Farm labor
reflects the impact of uninsurable risk on resource allocation.   

 
The order in which different agents adopt a new technology can
have significant distributional implications and can reinforce pre‐
existing patterns of inequality, as _____________________ Answer 5
Cochrane
observed in positing a technological treadmill in agriculture.  
 
Question 4
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The ______________ refers to a group whose adult members
regularly interbreed, resulting in fertile offspring -- that is, Answer 1
offspring themselves capable of reproducing.  Species
 
 
The ________________ famous "Economic development with Answer 2
unlimited supplies of labor" emphasized dualism while ignoring Arthur Lewis'
 
the role of economies of scale and circular causation.
 
Scientists classify each species with a unique, two-part scientific
name. In this system, modern humans are classified Answer 3
as______________.  Homo sapiens
 
 
The glory days of __________________________ spanned about
15 years, from the seminal paper of Rosenstein Rodan (1943) to Answer 4
the publication of Hirschman's Strategy (1958).  High Development Theory
 
 
The ______________________ is a branch of economics which
deals with economic aspects of the development process in low-
income countries. Its focus is not only on methods of
promoting economic development, economic Answer 5
Development Economics
growth and structural change but also on improving the potential  
for the mass of the population. 
 
Question 5
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More generally, future _______________ depends on future stocks
of productive assets and therefore on current investment patterns, Answer 1
savings and borrowing behavior.  Income
 
 
Capital accumulation may add new resources (clearing of unused
land) or upgrade the quality of existing resources, but its essential
feature is that it involves a _______________between present and Answer 2
future consumption, giving up a little now so that more can be had Trade-off
later.  

 
Robert Lucas asserted in 1988 that economists badly over-stress the Answer 3
role of ________________in economic growth.  Financial factors
 
 
Banerjee points to the possibility of too little risk-taking when banks
are not nearly that big. He argues that a challenge that most
developing countries face is to ensure an adequate supply of Answer 4
Risk-capital
___________.   
 
Jacoby (1993) exploits the relationships implied by
________________within traditional household models, in
particular the observations that households respond to shadow
prices, in this case shadow wages for labor, and that households Answer 5
Utility maximization
maximize shadow profits by setting the shadow price of an input  
equal to its marginal revenue product. 
 
Question 6
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______________________ advocates approaching issues of savings,
credit, and insurance from a trade theoretic perspective, recognizing
that savings and creditare means of intertemporal trade and that Answer 1
Besley
insurance is simply trade across states of nature.   
 
In the 1960s, agricultural scientists at the International Rice Research
Institute in the Philippines developed a new and highly productive Answer 2
hybrid rice seed, known asIR-8or popularly called______________.  Miracle rice
 
 
Economists have devoted considerable energy to investigate the extent
to which ___________________ are in fact able to smooth
consumption and the mechanisms they use to overcome income Answer 3
Households
variability to achieve relatively more stable consumption.   
 
Capital-saving technological progress is a much rarer phenomenon. But Answer 4
Capital
this is primarily because almost all of the world’s scientific and
technological research is conducted in developed countries, where the
Capital
mandate is to save labor not __________.  
 
Fields (2001) qualifies that the extent of the __________ on poverty
alleviation depends on the growth rate itself and the level of inequality.  Answer 5
Impact of growth
   

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To most economists the most important source of
_________________growth is technological progress.  Answer 1
Economic
   

Population growth, and the associated eventual increase in the labor

force, has traditionally been considered a positive factor in stimulating
____________________. An increase means more productive workers, Answer 2
and a large overall population increases the potential size of domestic Economic growth
markets.  

 
We know from the household modeling literature that
________________respond to changes in exogenous variables not only
by adjusting demand for hired labor, but also by adjusting supply of Answer 3
Households
labor to their own farm.  
 
_______________and labor supply decisions wage rates and
employment levels depend not only on the demand for labor, but also on
households’ supply of labor, which is an endogenous result of household Answer 4
Production
choice.   
 
Moss agrees that __________ cannot be expected to provide capital for Answer 5
the poor or even small companies, and that local community banks are Stock markets
better placed for serving such clients. 
Stock markets
   

Question 8
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The launch of the ___________________ on 1 January 1999 was a
historic event. Eleven national currencies were converted into one
single currency overnight. Greece became the twelfth EU Member State Answer 1
Euro
to adopt the single currency on 1 January 2001.   
 
The Asian Development Bank (ADB) provided assistance (technical
assistance, lending, equity investment, or credit guarantees) to the
financial sectors of its developing member countries amounting to over Answer 2
1970s
US$19 billion since the ________.   
 
The Committee of Wise Men proposes to speed up the removal of
impediments through the institutionalization of two new regulatory
committees for ________________, which should allow for an
increased harmonization of security regulations and less burdensome Answer 3
procedures for adapting Community rules to rapidly changing financial Security Markets  
markets. 
 
The connection between the operation of the financial system and
_________ has been one of the most heavily researched topics in Answer 4
development economics.  Economic growth
 
 
One of the important lessons learned from the recent global financial Answer 5
crisis and indeed from many crisis episodes (in both developed and Market forces
 
emerging markets) in the past is that the financial sector needs to be
adequately regulated and cannot be left entirely to the hands of
___________. 
 
Question 9
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There are three basic classifications of ________________progress
which are neutral, labor-saving, and capital-saving.  Answer 1
Technological
   

Eswaran and Kotwal (1985) offer perhaps the most compact and
elegant model to date explaining the observed heterogeneity of
______________________. In their view, different contracts reflect Answer 2
Agrarian Contracts
different techniques of combining non‐marketed productive inputs.   
 
Computers, the Internet, automated looms, high speed electric drills,
tractors, mechanical ploughs—these and many other kinds of modern
machinery and equipment can be classified as products of _________ Answer 3
Labor-saving
technological progress.   
 
Neoclassical theory tells us that ______________should be equalized
across production units or else the high marginal productivity user
should purchase or rent the factor from a low productivity user at a Answer 4
mutually attractive price, thereby generating greater aggregate output Factor Productivity
and welfare.   

 
A positive relationship typically exists between credit use or the
probability of modern technology adoption and farm size, and in
some circumstances these effects seem to overwhelm the labor Answer 5
effects to generate a positive relationship between Farm size
________________ and yields .   

 
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Endogenous growth theory and modern models of poverty traps
emphasize the central role of
______________________formation in giving rise to multiple Answer 1
Human capital
equilibria.   
 
________________________emerged as a distinct field of
analytical, empirical and institutional research only in the past Answer 2
half century with a rapid progress in the past generation. Development Economics
 
 
Development economics research ultimately describes and
explores the _____________ reasons why some countries, Answer 3
communities and people are rich and others are poor. Causal
 
 
The United Nations Development Programme developed a
Human Development Index which reported in its annual flagship
publication known as the Answer 4
__________________________precisely to capture the Human Development Report
multidimensional nature of well‐being.  

 
_______________ points out that development economics’ rich
history has produced much of lasting importance to economics.  Answer 5
Bardhan
   

The ________________________economics launched by

Stiglitz, Akerlof and others largely from within development Answer 6
economics has permeated the whole of the discipline. Wave of information
 
 
Rapid ___________________ is a recent phenomenon confined Answer 7
to the past three hundred years for less than one‐quarter of the Economic Growth
 
world’s population.
 
Young introduced the analytics of __________________based
on increasing returns. Answer 8
Growth
   

The nutritional _______________________literature

underscores that ill health is a cause as well as a consequence of Answer 9
being and becoming poor. Poverty trap
 
 
Stiglitz makes an especially apt of defense of development
economics likening it to mainstream economics as pathology is Answer 10
to _____________________. Medicine
 
 
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Capital accumulation results when some proportion of present income is
saved and invested in order to augment future _________________and Answer 1
income. Output
 
 
_____________________indeed find that wealthier households hold
higher risk, higher expected return portfolios, which naturally leads to Answer 2
different growth rates and increasing inequality over time. Binswanger
 
 
Supporting __________ development has also been a key priority of
development assistance in the past several decades.  Answer 3
Financial Sector
   

Nations accumulate international _________________in any or all of Answer 4

the following three forms: (1) foreign hard currency (primarily U.S. Cash Reserves
 
dollars) whenever they sell more abroad than they purchase; (2) gold
mined domestically purchased; and (3) deposits with the IMF, which
acts as a reserve bank for individual nations’ central banks. 
 
A significant body of evidence from _________________wherein he
suggested that the rich prove far more successful at smoothing Answer 5
consumption than do the poor.  Alderman
 
 
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Kranton (1996) emphasizes the costs of market participation are not
independent of the incidence of personalized, reciprocal exchange instead Answer 1
of ___________________exchange.  Market-based
 
 
Johnston and Mellor helped make the case for massive investments in
improving agricultural technologies by explaining the perhaps unique role
of _________________________ can play in stimulating economic Answer 2
Agriculture
development.   
 
A financial system facilitates transactions in the economy, both by
physically providing the ___________ to make and receive payments and Answer 3
by reducing transaction and information costs.  Mechanisms
 
 
Economists believe that the most important role of the financial sector in
facilitating growth is to reduce information, ________________ and Answer 4
transaction costs. Enforcement
 
 
Justin Lin, the chief economist of the __________, has recently argued that
low-income countries should make small, local banks the mainstay of their Answer 5
financial systems. World Bank
 
 
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_____________________ play a role in explaining how
technological inefficiencies persist.  Answer 1
Complementarities
   

_______________________and Hirschman argued that

economic development could be thought of as a massive
coordination failure, in which several investments do not occur Answer 2
simply because other complementary investments are similarly Rosenstein-Rodan
depressed in the same bootstrapped way.   

 
Societies that are far away from the economic frontier may see
economic growth as too limited and too long-term instruments Answer 3
leading to a failure of _________________________. International Aspirations
 
 
In many developing countries, the early institutions of colonial
rule were directly set up for the purposes of surplus Answer 4
_____________________. Extraction
 
 
The aspirations of an individual are generated and conditioned
by the experiences of others in his/her Answer 5
_______________________.  Cognitive neighborhood
 
 
The distinction between evolution and parameter is a
________________one. Answer 6
Semantic
   

There is a fundamental belief that the world economy is

ultimately a great _____________.  Answer 7
Leveler
   
____________________ and Ray argue that highly polarized
societies may actually avoid conflict via deterrence wherein Answer 8
polarization must vary positively with it.  Esteban
 
 
An important problem with theories of
_____________________is that they carry an un-clear burden Answer 9
of history.  Multiple equilibrium
 
 
The model of economic growth pioneered by Robert
_____________ had a fundamental impact on development Answer 10
economics. Solow
 
 
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During the __________________________, England's financial
system did a better job in identifying and funding profitable Answer 1
ventures than other countries in the mid-1800s.  Industrial Revolution
 
 
____________________ declared in 1952 that where enterprise
leads, finance follows. Answer 2
Joan Robertson
   

The _________________records the value of private foreign direct

investment, foreign loans by private international banks, as well of
loans and grants from foreign governments and multilateral Answer 3
Capital account
agencies such as the IMF and the World Bank.   
 
Total market capitalization of the new markets in five euro area Answer 4
countries grew from EUR 7 billion at the beginning of 1998 to EUR 167 billion
 
________ in December 2000. 
 
_____________________ argued that demonstrating how poorer
households may not only endogenously opt for asset portfolios of
lower expected return and risk  in the face of asset price risk and Answer 5
incomplete financial markets, but how they may also intentionally Zimmerman
destabilize consumption in order to smooth assets over time.   

 
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The Ricardian mechanisms associated with
____________________ than through the effect interaction among
distinct communities has in helping close the “idea gaps” that cause Answer 1
poorer countries, regions and households to lag behind according to Factor allocation
Romer.   

 
The Hirschman’s idea of backward and forward linkages has rest
fundamentally on the notion of pecuniary externalities linked to Answer 2
economies of ___________.  Scale
 
 
The popular Kuznets’s ________________ suggests that economic
growth may increase income inequality at the early stage of Answer 3
development, but reduce it at the mature stage of industrialization.  Inverted-U hypothe sis
 
 
The __________ theory postulated that economic growth would
either trickle down to the poor through job creation and other
economic opportunities or create the necessary conditions for the Answer 4
Trickle down
wider distribution of the economic and social benefits of growth.  
 
Dollar and Kraayoffer perhaps the most well‐known recent Answer 5
empirical study, showing that developing countries that have cut Tariff Rates
 
_____________________and substantially increased trade volumes
enjoyed accelerating growth rates and stable income inequality,
thus increased incomes for poor households, on average. 
 
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The _____________ discoveries of the late forties brought a period of
rising prices whose powerfully beneficial effects on the general Answer 1
temper of economic activity did not escape notice.   Gold
 
 
The importance of organizing activities and leadership received
signal recognition in _________________piquant contrast between
the consequences of the disappearance respectively of monarchs, Answer 2
Saint-Simon
statesmen and the heads of business.  
 
_________________________ in the Constitutional Code provides
for an Interior Communication Minister with inter aliaaqua-
procreative or water supply-securing and Malaria-obviating Answer 3
Bentham
functions.   
 
According to ______________________that joint stock companies
without exclusive monopolistic privileges were only likely to be
successful where all the operations were capable of being reduced to Answer 4
Adam Smith
what is called a routine or of no variation.   
 
Marshall's discussion of joint stock enterprise in his
__________________ is to realize what a great distance had been Answer 5
traversed since the days of Adam Smith. Industry and Tra de
 
 
Rae's New Principles of Political Economy is certainly by far the Answer 6
Infant industry
most distinguished exposition of the case for the public support of
________________.  Infant industry
 
 
Schumpeter's sharp distinction between innovation and
__________________with the reservation of the title of the
entrepreneur for those concerned in the former type of activity would Answer 7
Routine management
have seemed formalistic and out of touch with reality.   
 
The nineteenth-century English classical economists followed Smith
in regarding ______________ as the residue accruing to those who Answer 8
employed their capitals to set industry in motion. Profits
 
 
In his Della Moneta,________________ demonstrates the necessity
of money for any advanced community. Answer 9
Galiani
   

The theory of the significance for economic growth of the existence

of money was developed at times when ______________ made from Answer 10
the precious metals were the principal media of exchange.  Coins
 
 
Question 17
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The ______________________ is a branch of economics which
deals with economic aspects of the development process in low-
income countries. Its focus is not only on methods of
promoting economic development, economic Answer 1
growth and structural change but also on improving the potential Development Economics  
for the mass of the population. 
 
Throughout the latter 1980s and early 1990s, many concurred Answer 2
with Lalʹs assessment that development economics constitutes State -planned Economies
little more than a futile quest for queer exceptions to the rules
ofmainstream economicsand that the fundamental fallacy of such
pursuits was belied by the catastrophic failure State -planned Economies
of _________________.  

 
The ______________ refers to a group whose adult members
regularly interbreed, resulting in fertile offspring -- that is, Answer 3
offspring themselves capable of reproducing.  Species
 
 
Bardhan points out that development economics’ rich history has
produced much of lasting importance to economics more broadly
efficiency wage theory, dynamic externalities, multiple equilibria, Answer 4
_____________ modeling, adverse selection, rent‐seeking, Principal-agent
political economy, and nonlinear pricing.  

 
Scientists classify each species with a unique, two-part scientific
name. In this system, modern humans are classified as Answer 5
______________.  Homo sapiens
 
 
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New growth theorist’s Romer, Lucas, Aghion and How it linked the
technological change to the production of __________________. The
new growth theory emphasizes that economic growth results from Answer 1
Knowledge
increasing returns to the use of knowledge rather than labor and capital.   
 
The Big Push strategy is recommended recently by United Nations Answer 2
Development Program in __________________. The program suggests 2005
 
that for developing countries to break out of the poverty trap, a big push
of basic investments between now and 2015 in public administration,
human capital and key infrastructure is necessary. 
 
The ______________ embraced free trade and used its power as the
financial center of the world to promote the same. The Guyanese
historian Walter Rodney describes mercantilism as the period of the Answer 3
British Empire
worldwide development of European commerce.   
 
Karl Marx emphasized that the wealth of the capitalists comes from the
exploitation of the ___________created by the workers. Answer 4
Surplus Value
   

The mechanism for enhancing the nation’s wealth according to Smith

therefore is through ________________and exchange.  Answer 5
Specialization
   

The Physiocratic literature is encumbered by a superstructure of what

Comte would have called __________________, a natural law and the Answer 6
infallible method whereby societies may be happy and just.  Metaphysics
 
 
The function of the entrepreneur or risk-taker - as one who faces the
uncertainties of production in anticipation of demand was early
established as the fundamental distinction between contractual and Answer 7
Residual
_______ incomes.  
 
J.B. Say who in many ways is to be regarded as the popularized Smith,
thought of two kinds of income. For him ______ was essentially the
reward of the entrepreneur, who in his conception was the organizer and Answer 8
Profit
leader and not necessarily the provider of capital.  
 
Cantillon divides the active members of society into two groups, those
whose incomes are fixed by contractand those whose incomes are in the Answer 9
nature of a ______. Residue
 
 
F. A. Walker's treatment of profit as the rent of a special kind ofability,
while J. B. Clark’s conception of profit as a dynamic________.  Answer 10
Surplus
   

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Computers, the Internet, automated looms, high speed electric
drills, tractors, mechanical ploughs—these and many other kinds
of modern machinery and equipment can be classified as products Answer 1
Labor-saving
of _________ technological progress.   
 
____________ technological progress is a much rarer
phenomenon.  Answer 2
Capital-saving
   

Population growth, and the associated eventual increase in the

________, has traditionally been considered a positive factor in
stimulating economic growth. An increase means more Answer 3
productive workers, and a large overall population increases the Labor Force
potential size of domestic markets.  

 
Capital _________ may add new resources or upgrade the quality
of existing resources, but its essential feature is that it involves a
trade-off between present and future consumption, giving up a Answer 4
Accumulation
little now so that more can be had later.  
 
__________ results when some proportion of present income is
saved and invested in order to augment future output and income. Answer 5
Capital Accumulation
   

________ augmenting technological progress occurs when the

quality or skills of the labor force are upgraded, for example, by
the use of videotapes, televisions, and other electronic Answer 6
Labor
communications media for classroom instruction.   
 
To most economists the most important source of economic Answer 7
growth is ________. Technological Progress
 
 
In the 1960s, agricultural scientists at the International Rice
Research Institute in the Philippines developed a new and highly Answer 8
productive hybrid rice seed, known as _____ or “miracle rice.”  IR-8
 
 
________ augmenting technological progress results in the more
productive use of existing capital goods, for example, the Answer 9
substitution of steel for wooden plows in agricultural production. Capital
 
 
There are three basic classifications of technological progress
which are neutral, labor-saving and ___________. Answer 10
Capital-saving
   

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Labor augmenting technological progress occurs when the quality or
skills of the _______________ are upgraded for example, by the use of
videotapes, televisions, and other electronic communications media for Answer 1
Labor force
classroom instruction.   
 
Capital augmenting technological progress results in the more productive
use of existing capital goods, for example, the substitution of Answer 2
______________for wooden plows in agricultural production.  Steel
 
 
Based on our module reading, the typical examples of the countries with
bank-based financial systems are Japan and Germany, and of the
countries with market-based financial systems are the United States and Answer 3
United Kingdom
____________.   
 
A _____________ financial system relies largely on banks in mobilizing Answer 4
Bank-based
savings and financing corporate investment, while a market-based
financial system relies on securities markets and equity financing.  Bank-based
 
 
Greenwald and Stiglitz (1986) similarly emphasize that the consequences
of minor inefficiencies by one firm or household can create significant
aggregate distortions in the broader economy, given distortions in the Answer 5
underlying economy due to incomplete ____________________ and Markets
imperfect information.   

 
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___________________ benefited greatly from the enforced
monopolies, bans on foreign competition, and poverty of the Answer 1
workers due to mercantilist policies. Merchants
 
 
Technological changes in shipping and the growth of urban centers
led to a rapid increase in ________________. Answer 2
International Trade
   

European trade exported bullion to pay for goods from

______________thus reducing the money supply and putting Answer 3
downward pressure on prices and economic activity. Asia
 
 
__________________ benefited from the high tariffs and payments
from the merchants through mercantilist policies. Answer 4
Governments
   

The theory of the ________________is certainly concerned with

the ups and downs of output either in the aggregate or at least over Answer 5
substantial parts of the field. Trade Cycle
 
 
Scholars debate over why mercantilism dominated economic
ideology for __________years. Answer 6
250
   

Mercantilism is a form of ___________________by which its goal

is to enrich and empower the nation and state to the maximum
degree by acquiring and retaining as much economic activity as Answer 7
Economic Nationalism
possible within the nation's borders.   
 
J.B. Say recognized the possibility of _________________ in
which he begins by recalling the view frequently expressed by
business men that their difficulty rests not in the production but in Answer 8
Hoarding
the disposal of their wares.  
 
The Guyanese historian Walter Rodney describes mercantilism as
the period of the worldwide development of European commerce,
which began in the ______________ Century with the voyages of Answer 9
Portuguese and Spanish explorers to Africa, Asia, and the New 15th
World.  

 
Mercantilism developed at a time of transition of the European
economy where isolated ____________ estates were being replaced Answer 10
by centralized nation-states as the focus of power.  Feudal
 
 

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Direction : Choose the correct answer for each question below

One of the important lessons learned from the recent global financial Answer 1
crisis and indeed from many crisis episodes in the past is that the Market Forces
 
financial sector needs to be adequately regulated and cannot be left
entirely to the hands of ___________. 
 
Supporting __________ development has also been a key priority of
development assistance in the past several decades.  Answer 2
Financial Sector
   

The Asian Development Bank (ADB) provided assistance (technical

assistance, lending, equity investment, or credit guarantees) to the
financial sectors of its developing member countries amounting to over Answer 3
1970s
US$19 billion since the________.   
 
The connection between the operation of the financial system and
_________ has been one of the most heavily researched topics in Answer 4
development economics.  Economic Growth
 
 
Economists believe that the most important role of the financial sector
in facilitating growth is to reduce information, enforcement and Answer 5
_____________ costs. Transaction