To Maximize the Benefits of Partial Integration of Capital Markets

question 15

Multiple Choice

To maximize the benefits of partial integration of capital markets

• A)a country should choose to internationally cross-list those assets that are least correlated with the domestic market portfolio.
• B)a country should choose to internationally cross-list those assets that are most highly correlated with the domestic market portfolio.
• C)a country should choose to internationally cross-list those assets that are uncorrelated with the domestic market portfolio.
• D)none of the options

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Definitions:

Depository Institution

A financial institution that accepts deposits from the public and provides credit facilities and other financial services.

Pension Fund

A pool of assets forming an independent legal entity that is used to generate stable growth for future pension payments.

Legal Tender

The money that is officially recognized by a government as a valid form of payment that must be accepted for debts.

Commodity Money

Money that has intrinsic value, such as gold or silver, which can serve as a medium of exchange, a unit of account, and a store of value.