In First-Generation Models of Currency Crises,speculators

question 12

Multiple Choice

In first-generation models of currency crises,speculators

• A) play no significant role; only the government is to blame
• B) initiate the crisis, to which the government must then respond
• C) exacerbate the crisis when foreign reserves are depleted to a critical level
• D) misinterpret market signals regarding a currency's long run value
• E) help to stabilize the currency and prevent the financial system from collapsing

---

Definitions:

Cultural Norms

The shared expectations and rules that guide behavior of people within social groups.

Mother Communicate

The various ways through which a mother interacts and conveys information, feelings, or instructions to her children or others.

Sexual Orientation

Sexual orientation is a term used to describe a person's pattern of emotional, romantic, or sexual attraction to others, such as heterosexual, homosexual, bisexual, etc.

Sexual Attraction

The natural or instinctive feeling of being drawn towards others in a sexual or romantic way.