Which Statement Is Not True Regarding Emerging Markets

question 96

Multiple Choice

Which statement is not true regarding emerging markets?

• A) Emerging market financial institutions have generally proven to be weaker than those in industrialized countries.
• B) Emerging markets are the capital markets of poorer, developing countries that have liberalized their financial system to allow private asset trade with foreigners.
• C) Countries with emerging markets include Brazil, Mexico, and Thailand.
• D) Countries with emerging markets have been unable to liberalize their financial systems to allow private trade with foreigners.
• E) Emerging market financial institutions contributed to the financial crisis of 1997-1999.

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Definitions:

New Stock

Shares that are issued for the first time to the public by a company seeking to raise capital.

Indirect Method

A technique used in financial reporting to convert net income into net cash flow from operating activities, by adjusting for non-cash transactions.

Investment Bankers

Financial professionals who assist corporations and governments in raising capital by underwriting and issuing securities and advising on mergers and acquisitions.

Financial Intermediation

The process by which financial institutions act as intermediaries between lenders and borrowers.