Which of the Following Does Not Describe the Asian Economies

question 9

Multiple Choice

Which of the following does not describe the Asian economies involved in the 1997 currency crisis?

• A) banks had borrowed foreign currency and lent in domestic currency, exposing themselves to exchange rate risk
• B) banks had borrowed on a short term basis and lent on a long term basis
• C) over-accumulation of physical capital
• D) high and rapidly rising trade barriers within Asia
• E) high rates of domestic saving

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Definitions:

Inhibit

To prevent or restrict a specific action or operation, often used in the context of controlling processes or reactions.

Enable

To make a device or system operational; to allow a process or function to proceed.

Permanent Contact

A type of electrical contact that remains closed to ensure a constant flow of electricity, typically used in switches or relays.

Normally Open

A term describing an electrical switch or relay contact that is open (not conducting) when in its default state, closing only in response to a control action.