When global capital markets collectively react to international events like Russia's default on its sovereign debt, it is common to find

Question

Quizplus · Accepted Answer

When global capital markets react to events such as a sovereign default, there is typically an impact on the ability of multinational companies to raise capital. The increased risk perception and uncertainty can lead to higher borrowing costs and a reduction in available funding. While diversification can mitigate some of the risks, it does not necessarily eliminate the impact of a major event on capital markets. Therefore, options A and C are not accurate.

When Global Capital Markets Collectively React to International Events Like