Which of the Following Is True of Currency Crises

question 15

Multiple Choice

Which of the following is true of currency crises?

• A) They have become less frequent since 1978
• B) They are often caused by slow, steady, capital inflows
• C) They generally affect nominal exchange rates but not real exchange rates
• D) They generally reduce national income
• E) By making exports inexpensive and imports costly, they stimulate GDP

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Definitions:

Public Company Accounting Oversight Board

A nonprofit corporation established by Congress to oversee the audits of public companies to protect the interests of investors and further the public interest in the preparation of informative, accurate, and independent audit reports.

SEC

The U.S. Securities and Exchange Commission, a federal agency responsible for enforcing federal securities laws and regulating the nation's securities industry.

Contributory Negligence

Contributory Negligence is a legal doctrine where a plaintiff's failure to take proper care for their own safety can reduce or eliminate the defendant's liability.

Comparative Negligence

A legal doctrine that allocates damages based on the degree of fault or negligence found against each party in a lawsuit.