The interconnectedness of financial markets and the rapid movement of money and other financial assets is thought to contribute to

Question

Quizplus · Accepted Answer

The interconnectedness of financial markets can lead to economic destabilization, especially in smaller countries. This is because the movement of money and financial assets can have a significant impact on a country's economy, and smaller economies may be more vulnerable to fluctuations in these markets. Trade tariffs imposed by underdeveloped countries and inflation in larger countries are not directly linked to financial market interconnectedness.

The Interconnectedness of Financial Markets and the Rapid Movement of Money