Moderate

The transfer of savings from developing countries to industrially advanced countries to avoid govt. expropriation, taxation and high rates of inflation is_________________?

Correct answer: A. capital flight

  • A. capital flight
  • B. capital account
  • C. capital deficit
  • D. All of these

Explanation

Capital flight is the movement of savings or financial capital out of a country because investors fear expropriation, heavy taxation, inflation, or political instability. A capital account records transactions, but it is not the transfer itself.

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