Short-term international investment helps to create a greater level of liquidity, more stable exchange rates, and therefore a decreased likelihood of financial crisis.

Name: Short-term international investment helps to create a greater level of liquidity, more stable exchange rates, and therefore a decreased likelihood of financial crisis.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Short-term international investments can increase liquidity but may lead to volatile exchange rates and financial instability due to rapid capital flow reversals.

Short-Term International Investment Helps to Create a Greater Level of Liquidity