CLASS / COURSE: Economics

QUESTION DESCRIPTION:

II. Please answer the following questions using the insights presented by Abhijit Bannerjee in his lecture about “The challenge of world poverty: Savings”.

1. According to the video, when is efficient not to save?
2. According to the video, which country is one of t the fastest growing countries? At which rate?
3. What is its savings rate of the people in the country you answered in question 3?
4. What are the factors that make poor people not to save?
5. Why do banking institutions have fixed costs?
6. What are the 4 drawbacks of saving at home?
7. What is a fixed order ROSCA?
8. What is the advantage of ROSCA over saving at home?
9. Mention 2 disadvantages of the ROSCA system.
10. What is the main disadvantage of investing in the construction of a house (brick by brick)?
11. What is the difference between a money guard and a savings collector?
12. What is the importance/relevance of microcredit for the poor?
13. In a short-essay type of response (2-3 paragraphs), please describe what you learned about the video and state your opinion about the findings on the Philippines -India experiment?

 

Link of video lecture: http://video.mit.edu/watch/the-challenge-of-world-poverty-lecture-20-savings-14125/

SOLUTION DESCRIPTION: Completed Solution is attached. Click on Buy button and then download file to get full solution.

SUBJECTS / CATEGORIES:
1. Business Economics
2. Macroeconomics