1. In many poor countries, the banking system just isn't advanced enough to lend money for many large investments. Based on this single fact, where would you expect to see more entrepreneurs coming from rich families rather than poor families: in the rich countries or the poor countries? Why?

2. When one bond pays a higher interest rate than another bond, is that mostly because savers are less willing to supply loanable funds to the higher-rate bond, or because businesses are more interested in demanding loanable funds for the higher-rate bond? Why is this so?

3. How are houses like bonds? With respect only to their home equity (i.e. ignoring all other assets and investments), would homeowners tend to favor high or low interest rates?