Capital flight from the DVCs may be caused by
A)a fear of government privatization efforts.
B)slow domestic inflation.
C)low rates of domestic taxation.
D)risks of severe fluctuations in exchange rates.

Question

Quizplus · Accepted Answer

Capital flight from Developing and Vulnerable Countries (DVCs) is often caused by the risks of severe fluctuations in exchange rates, as investors seek to protect their assets from potential losses due to currency devaluation.

Capital Flight from the DVCs May Be Caused by