One Implication of a Currency Crisis Is That

question 76

Multiple Choice

One implication of a currency crisis is that

• A) it occurs due to a sharp appreciation in the value of a currency.
• B) it forces authorities to block large volumes of international currency reserves.
• C) a country in currency crisis is not eligible for loans from the International Monetary Fund.
• D) it results in the government sharply increasing interest rates to defend the prevailing exchange rate.
• E) a country in currency crisis faces sharp decreases in stock and property prices.