It Is Generally Believed That the 1997 Financial Crisis in East

question 53

Multiple Choice

It is generally believed that the 1997 financial crisis in East Asia was partly due to accounting factors in that part of the world. Which of the following accounting values was lacking in that part of the world and thereby contributed to the crisis?

• A) Professionalism
• B) Statutory control
• C) Uniformity
• D) Transparency

---

Definitions:

Currency

A system of money in general use in a particular country or in the international market for trade and finance.

Reserve Requirement

The minimum amount of reserves a bank must hold against deposits, as mandated by central banking authorities to ensure banking system stability.

Tight Monetary Policy

A central bank policy aimed at reducing inflation and slowing down the growth in the money supply by raising interest rates and other measures.

Required Reserve Ratio

The fraction of deposits that banks are required by law to keep on hand as reserves or with the central bank.