Which of the Following Is an Implication of a Currency

question 6

Multiple Choice

Which of the following is an implication of a currency crisis?

• A)It occurs due to a sharp appreciation in the value of a currency.
• B)It forces authorities to block large volumes of international currency reserves.
• C)A country in currency crisis is not eligible for loans from the International Monetary Fund.
• D)It results in the government sharply increasing interest rates to defend the prevailing exchange rate.
• E)A country in currency crisis faces sharp decreases in stock and property prices.

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