Author Question: What are three things to measure for in evaluating the performance of the capital markets? A) ... (Read 53 times)

james0929

  • Hero Member
  • *****
  • Posts: 586
What are three things to measure for in evaluating the performance of the capital markets?
 
  A) level of intertemporal trade, international trade, portfolio diversification
  B) level of portfolio diversification, balanced capital accounts, global inflation
  C) level of portfolio diversification, intertemporal trade, efficiency of foreign exchange
  D) onshore-offshore interest rate parity, level of portfolio diversification, stability of eurocurrency market
  E) onshore-offshore interest rate parity, interest parity and foreign exchange, balanced capital accounts

Question 2

What is the theory of Second Best?
 
  What will be an ideal response?



cswans24

  • Sr. Member
  • ****
  • Posts: 317
Answer to Question 1

C

Answer to Question 2

The principal of the second best tells us that when an economy suffers from multiple distortions, the removal of only a few may make matters worse, not better.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Russia has the highest death rate from cardiovascular disease followed by the Ukraine, Romania, Hungary, and Poland.

Did you know?

Dogs have been used in studies to detect various cancers in human subjects. They have been trained to sniff breath samples from humans that were collected by having them breathe into special tubes. These people included 55 lung cancer patients, 31 breast cancer patients, and 83 cancer-free patients. The dogs detected 54 of the 55 lung cancer patients as having cancer, detected 28 of the 31 breast cancer patients, and gave only three false-positive results (detecting cancer in people who didn't have it).

Did you know?

Everyone has one nostril that is larger than the other.

Did you know?

More than 50% of American adults have oral herpes, which is commonly known as "cold sores" or "fever blisters." The herpes virus can be active on the skin surface without showing any signs or causing any symptoms.

Did you know?

Though methadone is often used to treat dependency on other opioids, the drug itself can be abused. Crushing or snorting methadone can achieve the opiate "rush" desired by addicts. Improper use such as these can lead to a dangerous dependency on methadone. This drug now accounts for nearly one-third of opioid-related deaths.

For a complete list of videos, visit our video library