There Are Several Reasons Why Some Analysts Think That Financial

question 36

Multiple Choice

There are several reasons why some analysts think that financial markets have become more highly correlated in recent years. Which one does not belong?

• A)The development of a global economy has made companies and those economies more connected and less diverse
• B)The new European Central Bank has coordinated economic policy across the European Union, making that region more coordinated
• C)U.S. companies operating abroad, like Coca Cola, McDonalds, and ExxonMobil, are highly correlated with U.S. markets
• D)Every time we have a world event such as September 11, 2001, a currency crisis, or a market collapse somewhere, the international stock markets seem to fall together, making them look like they are highly correlated

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