A country whose financial markets function poorly is likely to
A) efficiently allocate its capital resources.
B) enjoy high productivity.
C) experience economic hardship and financial crises.
D) increase its standard of living.

Question

Quizplus · Accepted Answer

If a country's financial markets do not function well, it is likely to experience economic hardship and financial crises. This is because the country will struggle to obtain financing for productive investments and businesses, leading to slower economic growth and a weaker economy overall. Additionally, poorly functioning financial markets can lead to instability and volatility in the financial sector, potentially causing economic recessions and financial crises. Therefore, option C is the correct answer.

A Country Whose Financial Markets Function Poorly Is Likely to