If There Is a Major Problem in a Country That

question 7

Multiple Choice

If there is a major problem in a country that leads to the rapid withdrawal of foreign investment, this is known as

• A)moral hazard.
• B)adverse selection crisis.
• C)portfolio investment crisis.
• D)international financial crisis.

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Definitions:

Enjoyment

A feeling of pleasure and satisfaction obtained from various life activities or experiences.

Opportunity Cost

The financial implication of not selecting the following best possibility when faced with a decision.

Interest

The cost of borrowing money, typically expressed as a percentage of the amount borrowed, paid by borrowers to lenders.

Savings Account

A deposit account held at a bank or other financial institution providing principal security and a modest interest rate.