The Currency in a Small Asian Nation Is Depreciating Rapidly

question 112

Multiple Choice

The currency in a small Asian nation is depreciating rapidly in value. As a result, residents of the country and foreign businesses with an interest in the country are converting their currency into U.S. dollars. This is an example of

• A) deflation.
• B) arbitrage.
• C) liquidity rush.
• D) capital flight.
• E) currency swap.