Most developing countries rely on foreign financing because _____
A) their governments are unstable and run on deficits.
B) foreign financing is more reliable than domestic investments.
C) these countries do not generate enough savings to fund investments.
D) investors do not recognize their potential gains.
E) foreign financing does not lead to inflation.

Question

Quizplus · Accepted Answer

Developing countries often have limited access to domestic savings due to low incomes and high poverty rates. Foreign financing can fill this gap and provide necessary funds for investment and development projects.

Most Developing Countries Rely on Foreign Financing Because _____