Capital flight refers to the fact that both human and financial capital
A) flow into developing countries to build much needed infrastructure.
B) leave developing countries in search of a higher rate of return.
C) leave developed countries in search of a higher rate of return.
D) flow into developing countries to invest in risk free investments.

Question

Quizplus · Accepted Answer

Capital flight occurs when assets or money rapidly flow out of a country, due to an event of economic consequence. This often happens in developing countries, where investors seek to move their funds to more stable and secure environments that offer higher rates of return.

Capital Flight Refers to the Fact That Both Human and Financial