One of the biggest impediments to a global capital market is _________.
A) volatile exchange rates
B) the lack of common accounting standards
C) lower disclosure standards in the U.S. than abroad
D) the lack of transparent reporting standards across the EU

Question

Quizplus · Accepted Answer

The lack of common accounting standards makes it difficult to compare financial statements across borders, hindering the development of a global capital market. This issue has been recognized and efforts are being made towards convergence of accounting standards. The other options mentioned may also pose challenges but are not as significant as the lack of common accounting standards.

One of the Biggest Impediments to a Global Capital Market