The rapid movement of money across borders can easily overwhelm a country's financial markets when:
A) a country has a heavily leveraged banking system.
B) the required reserves are relatively low.
C) the interest rates are relatively high.
D) a country is small.

Question

Quizplus · Accepted Answer

Small countries often have less robust financial markets, making them more susceptible to the impacts of rapid cross-border capital flows.

The Rapid Movement of Money Across Borders Can Easily Overwhelm