Which of the Following Was NOT a Cause or a Characteristic

question 46

Multiple Choice

Which of the following was NOT a cause or a characteristic of the 1994/95 Mexican peso crisis?

• A)An overvalued exchange rate
• B)An inflow of large foreign portfolio capital
• C)The inability of the IMF,the world bank,and the NAFTA member countries (i.e. ,the United States and Canada)to predict the looming financial crisis
• D)Shifts by the world capital markets toward more conservative and risk-averse investments because of interest and exchange rate movements around the world
• E)High domestic investments with insufficient domestic savings

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Definitions:

Ordinary Annuity

A financial product where regular payments are received or paid at the end of each period, such as monthly or annually.

Compounded Monthly

Interest calculation method where interest is added to the principal each month, increasing the amount on which subsequent interest is calculated.

RRSP

A Registered Retirement Savings Plan that allows individuals in Canada to save for retirement on a tax-deferred basis.

Annuity Payment

A fixed amount of money paid to someone each period, typically for the rest of their life or for a fixed number of years, as part of an annuity contract.