“Correlation” is a measure of how one variable causes another to change.

Forward contracts are often illiquid because

A) any capital gains on them are heavily taxed, making investors reluctant to sell them. B) government regulation has not provided for a secondary market in them. C) they generally contain terms specific to the particular buyer and seller. D) the brokerage fees involved in buying and selling them are very high.

Capital flight raises a country's interest rate

a. True b. False Indicate whether the statement is true or false