If Financial Markets Are Segmented, and If Firms in the U.S

question 18

Multiple Choice

If financial markets are segmented, and if firms in the U.S. are not subject to the same barriers of international investment, then this could lead to _____ risk premiums on international projects.

• A) higher
• B) zero
• C) negative
• D) lower
• E) infinite

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Definitions:

Psychological Qualities

Characteristics of the mind that influence behavior, thought processes, and emotional responses.

Physical Qualities

The attributes or characteristics that can be observed or measured in a physical or material sense.

Mitigation

The action of reducing the severity, seriousness, or painfulness of something, often used in the context of disaster response or environmental impact reduction.

Prevention

The act of stopping something bad from happening or arising.