There Are Several Reasons Why Some Analysts Think That Financial

question 40

Multiple Choice

There are several reasons why some analysts think that financial market 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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Definitions:

Monthly Schedule Depositor

A designation for businesses that are required to deposit employment taxes on a monthly basis, typically when their tax liability in a lookback period exceeds certain thresholds.

Tax Liability

The total amount of tax owed to the IRS or other tax authorities after all deductions, credits, and exemptions.

Semiweekly Depositor

A semiweekly depositor is a business that must deposit employment taxes on Wednesdays or Fridays, depending on the day wages are paid, due to the size of its payroll.

FICA Withholding

Refers to the payroll taxes automatically deducted from an employee's paycheck to fund Social Security and Medicare programs.