19. Capital mobility is:
Group of answer choices
A. any of the answers given, depending on the circumstances
B. neither a sufficient nor a necessary condition for financial market integration
C. a sufficient but not a necessary condition for financial market integration
D. a sufficient and a necessary condition for financial market integration
Answer-
The correct Option is C.
Capital mobility is a sufficient but not a necessary condition for financial market integration.
Capital mobility is not a necessary condition for market
integration.
Capital mobility is a sufficient condtion for market integration or
one can infer that a high level of capital mobility indicates a
high level of market integration.
Market integration is conducive to capital mobility and increases
the potential cash flows.
The other Options A,B and D are incorrect.
Option B is incorrect as capital mobility is a sufficient condition
for market integration.
Option D is incorrect as capital mobility is not a necessary
condition for market integration.
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