Which of the following statements regarding barriers to cross-border capital flows is not true?
A) They limit the ability of capital to roam the world freely in search of the highest risk-adjusted return.
B) They can lead to too much capital being invested in some markets and too little in others,at any one time.
C) They are no longer responsible for the relatively low correlation between the movements of stock markets in different countries.
D) They include limits on the amount of a firm's stock that a foreigner can own and limits on the ability of a country's citizens to invest their money outside that country.
Correct Answer:
Verified
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