Question

1. why can remittances be problematic?

a. they widen the gap between the rich and poor in developing countries.
b. they do not meaningfully contribute to the gdps of developing countries.
c. they are not taxed and cannot be traced.
d. they are primarily used to fund organized crime and terrorism.
e. they encourage people to take lower paying jobs than they are qualified for.

Explanation:

Remittances are often informal transfers of money. Since they are not taxed and lack proper tracing mechanisms, this can lead to various issues such as loss of potential government revenue (from taxes) and difficulties in monitoring financial flows for security and economic management purposes.

Answer:

C. They are not taxed and cannot be traced.