Which of the following best defines capital flight?
A)the movement of workers across international borders in response to exchange rate changes
B)the movement of funds between financial intermediaries when interest rates change
C)the ability of investment expenditures to lift a country out of poverty
D)a large and sudden movement of funds out of a country

Question

Quizplus · Accepted Answer

Capital flight refers to the sudden and massive outflow of funds from a country, usually due to economic or political instability, causing a destabilizing effect on the economy. This can occur through various channels, including selling investments and assets, shifting funds to foreign banks, or converting domestic currency into a foreign one.

Which of the Following Best Defines Capital Flight