What is "capital flight" as it relates to the underdeveloped world?
A) Imperfect flows of information hinder investment opportunities in the underdeveloped world.
B) Banks in the underdeveloped world are inadequately connected to the developed world.
C) Wealthy individuals and firms invest and deposit monies in developed countries.
D) Educated people migrate to developed countries.
E) Investments are made in airports to improve transportation infrastructure

Question

Quizplus · Accepted Answer

Capital flight refers to the movement of large sums of money and assets out of a country by individuals, businesses, and governments. In the context of the underdeveloped world, it can be a result of the lack of investment opportunities and political instability. Wealthy individuals and firms may choose to invest and deposit their money in developed countries due to greater perceived stability and potential returns, further hindering the development of underdeveloped economies.

What Is "Capital Flight" as It Relates to the Underdeveloped