One of the most important drawbacks of the limited liquidity of an international capital market is that the cost of capital tends to be higher than it is in a purely domestic market.
Correct Answer:
Verified
Q1: Commercial banks take cash deposits from corporations
Q3: Commercial banks perform a direct connection function
Q5: A capital market brings together those who
Q5: Systematic risk refers to movements in a
Q6: By diversifying a portfolio internationally,an investor's level
Q7: Market makers are the financial service companies
Q8: The larger pool of investors in an
Q9: Commercial banks bring investors and borrowers together
Q10: In a purely domestic capital market,the liquidity
Q11: By holding a variety of stocks in
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents