Everything else held constant,an international bank based in New York would prefer to loan money to an efficient firm operating in San Paulo,Brazil than an inefficient firm operating in southern Californi
A.

Question

Quizplus · Accepted Answer

The international bank based in New York would prefer to loan money to an efficient firm operating in San Paulo, Brazil because Brazil is considered an emerging market and offers the bank a higher potential return on investment. In contrast, an inefficient firm operating in southern California may be seen as a higher risk investment and therefore less desirable for the bank to loan money to.

Everything Else Held Constant,an International Bank Based in New York