Question

Remittances are important to developing economies because __________.
A.
they completely counteract the effects of the brain drain
B.
they are immune to inflation and allow for greater purchasing power
C.
the tax structure of exclusive economic zones is complicated
D.
they create purchasing power for many people and allow money to flow into the economy

Please select the best answer from the choices provided.

A
B
C
D

Answer 1

D

Remittances send money from workers abroad back to households in their home countries, increasing household incomes, consumption, and overall money flow in the economy—supporting poverty reduction and financial stability.