What Is Not One of the Reasons for Currency Crises

question 14

Multiple Choice

What is not one of the reasons for currency crises that have shaken all emerging markets in the last ten years?

• A) Free-market economy
• B) Corporate socialism
• C) Banking stability and management
• D) Corporate governance

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Definitions:

Expected Return

The anticipated average return from an investment based on its probable profits.

Recession

A period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters.

Portfolio

A group of various financial instruments such as stocks, bonds, commodities, and cash or cash-like assets, including mutual funds and exchange-traded funds.

Portfolio Diversification

An investment strategy that involves spreading investments across different financial assets to reduce risk.