Which of the Following Is a Reason Why the Global

question 68

Multiple Choice

Which of the following is a reason why the global capital market is increasingly becoming speculative?

• A) A global market reduces the liquidity of investments and increases the chances of incurring losses.
• B) Investments in the global capital market are faced with a lack of quality information.
• C) Investments in the global capital market are not conducive to diversification.
• D) The cost of capital is more in a global market and this increases the level of risk associated with it.

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Definitions:

Wine

An alcoholic beverage made from fermented grapes or other fruits, with variations in taste and strength depending on the type of grape and production process.

Production Possibility Frontier

An image projecting the ultimate production capacities for a duo of items, rooted in a given assortment of inputs including resources and extra aspects.

Technology Level

The current state of technological advancement and availability in a society or sector.

Resources Available

The total assets, both tangible and intangible, that are at disposal for use in the production of goods and services.