When Is the Phenomenon of Capital Flight Most Likely to Occur

Multiple Choice

When is the phenomenon of capital flight most likely to occur?

A) When the recovery phase post an economic depression nears its end
B) When the value of domestic currency depreciates rapidly because of hyperinflation
C) When a country's economic prospects are stable and indicate growth
D) When interest rates are low for a prolonged period of time
E) When governments lift convertibility restrictions on their currency