When global capital markets collectively react to international events, like Russia's default on its sovereign debt, it is common to find

Question

Quizplus · Accepted Answer

When there is a significant international event that affects global capital markets, such as a sovereign debt default, there is often an impact on the ability of multinational companies to raise capital. Investors can become hesitant to invest in certain markets or industries. While Wall Street firms may be diversified, they are not immune to the effects of these events. Therefore, it is likely that B is the most accurate answer. Option A is incorrect because multinational companies' ability to raise capital can be impacted. Option C is incorrect because Wall Street firms can be affected by these events. Option D is incorrect because only option B is true.

When Global Capital Markets Collectively React to International Events, Like