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.

Describe the boomerang effect and its psychological underpinnings, such as psychological reactance.

Identify the factors influencing persuasion, including speech speed and the presence of peripheral cues.

Distinguish between the central and peripheral routes of the elaboration likelihood model and their implications for persuasion strength.

Recognize the significance of personal relevance in the persuasion process.