little access to formal insurance or credit

econ 128 exam 2

external barriers 
- costs: account opening fees, withrawal penalties, bank location 
-unexpected expendatures, shocks 

Internal barriers 
-little patience
-motivation to save if the goal isn&#039;t concrete

-don&#039;t have the info to assess if credit is entirely worthy 
-don&#039;t have collateral 
-small loans that aren&#039;t worth the fees

why is formal credit difficult for small lenders

can lend in groups 
paid weekly 

benefits
- people account of keep each other 
-

(1) accelerated output growth through technological, institutional, and price incentive changes designed to raise the productivity of small farmers;
(2) rising domestic demand for agricultural output derived from an employment-oriented, urban development strategy;
and (3) diversified, nonagricultural, labor-intensive rural development activities that directly and indirectly support and are supported by the farming community.

An agriculture- and employment-based strategy of economic development requires three basic complementary elements:

-increased specialization and devision of labor 
-more exchanges
-vulnerable to fluxactions

-information
-hold-up
-cooperation 
-coordination
-commitment

Study with Quizlet and memorize flashcards containing terms like effects of high risk in low income areas, why is saving low, roscas or "merry-go-rounds" and more.

econ 128 exam 2 Flashcards

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