Which of the Following Statements Regarding Barriers to Cross-Border Capital

question 56

Multiple Choice

Which of the following statements regarding barriers to cross-border capital flows is not true?

• A)They limit the ability of capital to roam the world freely in search of the highest risk-adjusted return.
• B)They can lead to too much capital being invested in some markets and too little in others,at any one time.
• C)They are no longer responsible for the relatively low correlation between the movements of stock markets in different countries.
• D)They include limits on the amount of a firm's stock that a foreigner can own and limits on the ability of a country's citizens to invest their money outside that country.

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