In the Context of the 1997 Asian Crisis, How Did

question 56

Multiple Choice

In the context of the 1997 Asian crisis, how did the International Monetary Fund's "one-size-fits-all" approach to macroeconomic policy affect South Korea?

• A) It led to a decrease in the interest rates of short-term loans.
• B) It made it difficult for companies to service their excessive short-term debt obligations.
• C) It decreased the probability of widespread corporate defaults.
• D) South Korea failed to recover from its financial crises.
• E) South Korea was forced to increase restrictions on foreign direct investment.

---

Definitions:

Barter

A system of exchange where goods or services are traded directly for other goods and services without the use of money.

Commodity Money

Commodity Money is a type of currency in which the value comes from a commodity of which it is made, such as gold or silver coins.

Largely Self-Sufficient

Describes an entity or community that can fulfill nearly all of its needs without external assistance.

Before Specialization

Refers to the economic state or condition prior to the allocation of resources towards the production of specific goods or services in which they have a comparative advantage.