When Global Capital Markets Collectively React to International Events, Like

question 54

Multiple Choice

When global capital markets collectively react to international events, like Russia's default on its sovereign debt, it is common to find

• A)that there is no impact on multinational companies' ability to raise capital.
• B)an impact on the ability to raise capital.
• C)that Wall Street firms are so diversified that they are not affected by this event.
• D)All of these options are true.

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Definitions:

English Auction

A type of auction in which the price starts low and is progressively bid upwards, with the highest bid at the end winning the item.

Rational Self-Interest

The principle that individuals tend to make decisions that maximize their own utility or benefit.

Collude

To conspire or work together secretly, especially in order to cheat or deceive others.

Dutch Auction

A type of auction where the auctioneer starts with a high asking price which is lowered until some participant is willing to accept the auctioneer’s price, or a predetermined minimum price is reached.