In Stage Three of a Financial Crisis in an Emerging

question 1

Multiple Choice

In Stage Three of a financial crisis in an emerging market economy,the currency mismatch refers to ________.

• A) the mismatch between size of the actual notes and the high price levels need to buy basic goods
• B) the difference in the currency FX markets over time
• C) the mismatch between the currency of the stock and bond markets
• D) the fact that most debt in emerging market economies is denominated in U.S. dollars

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