a developing economy that primarily relies on agriculture, the government decides to implement a series of reforms aimed at liberalizing the financial sector, including easing restrictions on foreign bank entry. What is the most likely short-term impact of these reforms on the agricultural sector's access to credit? A) Increased access to credit for the agricultural sector due to enhanced competition in the banking sector. B) Decreased access to credit for the agricultural sector as foreign banks focus on more profitable urban and industrial clients. C) No significant chan
In a developing economy that primarily relies on agriculture, the government decides to implement a series of reforms aimed at liberalizing the financial sector, including easing restrictions on foreign bank entry. What is the most likely short-term impact of these reforms on the agricultural sector's access to credit?
A) Increased access to credit for the agricultural sector due to enhanced competition in the banking sector.
B) Decreased access to credit for the agricultural sector as foreign banks focus on more profitable urban and industrial clients.
C) No significant change in access to credit for the agricultural sector, as foreign banks have minimal impact on local lending.
D) A shift in credit allocation from large agricultural businesses to small-scale farmers due to diversified lending practices of foreign banks.
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