The Two Key Factors That Trigger Speculative Attacks on Emerging

question 3

Multiple Choice

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

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

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Definitions:

Emerging Industries

Sectors or industries that are in the early stages of development and show potential for significant growth and innovation in the future.

First Mover

Refers to a company that is the first to enter a particular market, gaining advantages such as brand recognition and customer loyalty before competitors.

Korean Cosmetics

Beauty products originating from South Korea, known for their innovative formulas and packaging, heavily influenced by cultural trends and skincare routines.

Face Oils

Skincare products composed of natural oils designed to hydrate, nourish, and rejuvenate the facial skin.