International capital markets experience a kind of risk not faced in domestic capital markets, namely
A) "economic meltdown" risk.
B) Flood and hurricane crisis risk.
C) the risk of unexpected downgrading of assets by Standard and Poor.
D) the risk of exchange rate fluctuations.
E) the risk of political upheaval.

Question

Quizplus · Accepted Answer

International capital markets involve transactions across multiple currencies, therefore, fluctuations in exchange rates can create a risk that is not present in domestic capital markets.

International Capital Markets Experience a Kind of Risk Not Faced