Problems of limited liquidity are strictly restricted to less developed nations,which tend to have smaller domestic capital markets.

Question

Quizplus · Accepted Answer

This statement is incorrect as limited liquidity is not strictly restricted to less developed nations only. Developed nations too can face issues with limited liquidity, especially during times of market stress or economic downturns. Additionally, limited liquidity can also occur in specific sectors or industries within a country, regardless of its level of development.

Problems of Limited Liquidity Are Strictly Restricted to Less Developed