Question

Deregulation and globalization of the financial markets increase the volatility in ___________.

• A. Internal rates
• B. Exchange rates
• C. Prices of financial assets
• D. All of the above
• E. Both (A) and (B) above

Answer 1

The correct option is D All of the above

The most important and visible effect of globalization and integration of financial markets is the increase in volatility in:
1. Interest rates
2. Exchange rates &
3. Prices of financial assets change quite frequently in response to various changes taking place in different segments of the financial markets all over the world.