Which of the Following Is a True Statement About Crises

question 40

Multiple Choice

Which of the following is a true statement about crises caused by volatile capital flows?

• A)Volatile capital flows rarely cause contagion effects.
• B)Technological advances have increased the volatility of capital flows.
• C)Exchange rates appreciate when there are capital outflows.
• D)Budget deficits decrease when there are capital outflows.

---

Definitions:

Accurate

The quality of being correct and precise without errors.

Reliable

The quality of being consistently good in performance, providing trustworthy results over time.

Problem Avoiders

Individuals or entities that steer clear of confronting or dealing with issues directly.

Active Managers

Managers who take a hands-on approach in overseeing projects, making decisions, and guiding their team to achieve specific objectives.