An inherent weakness of ________ is the absence of the profit ...

[maegan_martin]

An inherent weakness of ________ is the absence of the profit incentive.
 
  A) government-directed credit
  B) government-backed deposit insurance
  C) private loans
  D) prudential supervision

Question 2

Based on the Saving-Investment Diagram, the difference between values H and E could measure the net capital inflow, if ________.
 
  A) the difference between values H and D measures the trade surplus
  B) the domestic real interest rate is indicated by A
  C) desired saving has increased
  D) desired investment has decreased
  E) none of the above

[abctaiwan]

Answer to Question 1

A

Answer to Question 2

C