When Is the Phenomenon of Capital Flight Most Likely to Occur

question 13

Multiple Choice

When is the phenomenon of capital flight most likely to occur?

• A) When the recovery phase post an economic depression nears its end
• B) When the value of domestic currency depreciates rapidly because of hyperinflation
• C) When a country's economic prospects are stable and indicate growth
• D) When interest rates are low for a prolonged period of time
• E) When governments lift convertibility restrictions on their currency

---

Definitions:

Pyranose Forms

The six-membered oxygen-containing heterocyclic forms of monosaccharides or sugars.

Monosaccharide

The simplest form of carbohydrates, consisting of a single sugar molecule, such as glucose or fructose.

Cyclic Hemiacetals

Compounds formed from the reaction between an aldehyde and an alcohol under acidic conditions, resulting in a ring structure containing both an alcohol and an ether (or alkoxy) group.

Pyranoses

Ring forms of six-membered sugar molecules that result from intramolecular hemiacetal formation, where the oxygen atom is part of the ring.