The Two Key Factors That Trigger Speculative Attacks on Emerging

question 10

Multiple Choice

The two key factors that trigger speculative attacks on emerging market currencies are

• A)deterioration in bank balance sheets and severe fiscal imbalances.
• B)deterioration in bank balance sheets and low interest rates abroad.
• C)low interest rates abroad and severe fiscal imbalances.
• D)low interest rates abroad and rising asset prices.

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Definitions:

Organizational Politics

The use of power and social networking within an organization to achieve changes that benefit the individual or group, often at the expense of others.

Inoculation Effect

The inoculation effect is a social psychological and communication theory that explains how an initial exposure to a weakened form of an argument makes individuals more resistant to later attempts to change their attitudes or beliefs.

Impression Management

A process where individuals attempt to control the perceptions others have of them, often in social or work settings.

Machiavellianism

A personality trait characterized by manipulation, deceit, and a lack of morality in order to achieve one’s goals, often referenced in the context of leadership and organizational behavior.