To what does global contagion refer?
A) an equalization of world interest rates
B) elimination of risk premiums between countries
C) adverse changes in market sentiment based on events in faraway places
D) switching to fixed exchange rates by emerging market economies

Question

Quizplus · Accepted Answer

Global contagion refers to the spread of adverse changes in market sentiment based on events that occur in faraway places. It can result in a widespread sell-off of assets across different markets and countries.

To What Does Global Contagion Refer