All of the following are reasons for triggering capital flight in emerging markets except:
A)rising government debt.
B)a decline in commodity prices.
C)political risk.
D)banking problems.

Question

Quizplus · Accepted Answer

A decline in commodity prices may have negative effects on the emerging market's economy and currency, but it is not a direct trigger of capital flight. Rising government debt, political risk, and banking problems are more likely to cause investors to withdraw their capital from an emerging market.

All of the Following Are Reasons for Triggering Capital Flight