Question: a. Discuss the difference between a bank-based and a market-based financial system, and state whether the financial systems of developing countries are generally characterised as

a. Discuss the difference between a bank-based and a market-based financial system, and state whether the financial systems of developing countries are generally characterised as bank-based or market-based. Does the structure of the financial system affect the nature of financial relationships? (30 marks)

b. Describe the typologies of private capital flows and the rationale for the existence of a hierarchy of private capital flows to developing countries.

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