4. How does financial resource affect the development of a country?

Financial resources are the amount of funds at the disposal of governments and businesses.

Governments and businesses make use of financial resources by getting loans, which they use to invest in new projects, government programs, wages, and so on.

As we can see, financial resources are very important for the development of a country. They are directly related to both national saving and national investment.

If a country lacks enough financial resources to provide for its businesses and governmetns, it will likely develop very slowly or not develop at all, because both saving and investment will be very low to allow the economy to grow at its full potential.

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