Question
QUESTION 4 In a laissez-faire economy, an efficient financial intermediation system mobilises and allocates scarce resources towards activities that would optimise the rates of return.
QUESTION 4
In a laissez-faire economy, an efficient financial intermediation system mobilises and allocates scarce resources towards activities that would optimise the rates of return. On this basis, the commercially-driven and profit-maximising banking institutions would often tend to take a short-term view and consider solely the private benefit of a project, at the expense of the potential long-term social benefit that could be derived from financing a particular project.
i. Analyse the role of development financial institutions (DFIs) in Malaysia to address the gap that is evident in the marketplace, specifically in certain segments of the economy that have been underserved by the banking system
ii. Examine the two major DFIs that are instrumental towards the development and growth of the Small Medium Enterprises (SMEs) in Malaysia.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started