What are three things to measure for in evaluating the performance of the capital markets?

Question

Quizplus · Accepted Answer

The three things to measure for in evaluating the performance of capital markets are the level of portfolio diversification, intertemporal trade, and efficiency of foreign exchange. Option C includes these three factors while the other options do not. Option A includes international trade which is not directly related to evaluating capital market performance. Option B includes balanced capital accounts and global inflation, which are also not directly related to evaluating capital market performance. Option D includes onshore-offshore interest rate parity and stability of eurocurrency market, which are important but not the most essential factors in evaluating capital market performance. Option E includes onshore-offshore interest rate parity, interest parity and foreign exchange, and balanced capital accounts, which are important but not as relevant to evaluating overall capital market performance as the factors in option C.

What Are Three Things to Measure for in Evaluating the Performance