One indicator of international financial openness in advanced countries is that:
A) defaults by borrowers have decreased significantly.
B) cross-border financial transactions in advanced nations have increased tenfold.
C) restrictions on mortgage lending or bank capital requirements have decreased.
D) governments no longer try to control interest rates.

Question

Quizplus · Accepted Answer

Cross-border financial transactions increasing tenfold is a clear indicator of international financial openness in advanced countries. This suggests that barriers to financial flows between countries have been reduced or eliminated, making it easier for individuals and institutions to invest, borrow, or transfer money across borders. The other choices, such as decreased defaults or reduced mortgage lending restrictions, do not necessarily indicate greater financial openness, as these could be the result of other policy or economic factors.

One Indicator of International Financial Openness in Advanced Countries Is