If Capital Flows Freely Throughout the World, One Would Expect

question 26

Multiple Choice

If capital flows freely throughout the world, one would expect it would flow:

• A) from the rich nations, where it is abundant and cheap, to the poor nations, where it is scarce and dear.
• B) from the poor nations, where it has less value, to the rich nations, where it has more value.
• C) from the savers to financial institutions.
• D) from international lenders to international borrowers.

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Definitions:

Comets

Celestial bodies orbiting the sun, typically characterized by a nucleus of ice and dust and, when near the sun, a visible coma or tail.

Orbit

The curved path of a celestial object or spacecraft around a star, planet, or moon, under the influence of gravitational forces.

Pronoun

A word used to replace a noun or noun phrase, often to avoid repetition.

Committee

A group of people appointed or elected to perform a specified service or function.