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      Question

      What is the role of political stability in the success

      of a global financial center?
      A It is not important Correct Answer Incorrect Answer
      B It can create an environment that is conducive to doing business and attracts investment Correct Answer Incorrect Answer
      C It can lead to concentration of financial activity Correct Answer Incorrect Answer
      D It can exacerbate inequality both within and across countries Correct Answer Incorrect Answer
      E None of the above Correct Answer Incorrect Answer

      Solution

      Political stability and a favorable business environment: This includes factors such as low taxes, flexible labor laws, and a strong legal system that protects property rights and enforces contracts. These factors create an environment that is conducive to doing business and attracts investment.

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