A Consequence of the World Movement Toward Financial Integration and Openness

question 92

Multiple Choice

A consequence of the world movement toward financial integration and openness is:

• A) depreciating exchange rates.
• B) financial interdependence coupled with a tenfold increase in the volume of foreign assets.
• C) a retreat toward safety and heavier regulation of financial flows.
• D) dominance by the United States as being the only destination for investment funds.

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Definitions:

Res Ipsa Loquitur

Latin, meaning “the thing speaks for itself,” which is also known as the doctrine of common knowledge.

Respondeat Superior

Latin, meaning “let the master answer,” a doctrine under which an employer is legally liable for the acts of his or her employees, if such acts were performed within the scope of the employee’s duties.

Duces Tecum

a court order that requires an individual to produce documents or records for a legal proceeding.