Without international capital flows, there would be ____ funding available in the United States across all risk levels, and the cost of funding would be ____ regardless of the firm's risk level.
A) more; lower
B) more; higher
C) less; lower
D) less; higher

Question

​Without international capital flows, there would be ____ funding available in the United States across all risk levels, and the cost of funding would be ____ regardless of the firm's risk level.
A) ​more; lower
B) ​more; higher
C) ​less; lower
D) ​less; higher

Quizplus · Accepted Answer

Without international capital flows, there would be less funding available in the United States as the pool of capital would be limited to domestic sources only. This reduced supply of capital would lead to higher costs of funding across all risk levels due to increased competition for the limited funds.

​Without International Capital Flows, There Would Be ____ Funding Available

Without International Capital Flows, There Would Be ____ Funding Available