__________ occurs at the start of a financial crisis. It results in the loss of the financial account surplus,creating a severe deficit in the country's overall balance of payments.
A)Capital risk
B)Financial liquidity
C)Money laundering
D)Corporate socialism
E)Capital flight

Question

Quizplus · Accepted Answer

Capital flight occurs when investors and savers in a country withdraw their financial assets and investments from the country in response to economic instability or perceived risks. This results in the loss of the financial account surplus and a severe deficit in the country's overall balance of payments. It is commonly observed at the start of a financial crisis.

__________ Occurs at the Start of a Financial Crisis