Generally Speaking, Liberalization of Financial Markets When Combined with a Weak

question 39

Multiple Choice

Generally speaking, liberalization of financial markets when combined with a weak, underdeveloped domestic financial system tends to

• A)strengthen the domestic financial system in the short run.
• B)create an environment susceptible to currency and financial crises.
• C)raise interest rates and lead to domestic recession.
• D)none of the above

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Definitions:

Reflective Judgment

Mature type of reasoning that synthesizes contradictions among perspectives.

Autonomous

Having the capacity for self-governance or the ability to make decisions independently.

Dualistic

Pertaining to or involving a distinction between two fundamentally different concepts, perspectives, or entities.

Relativistic

Pertaining to the understanding that knowledge, truth, and morality exist in relation to culture, society, or historical context and are not absolute.