The 'Destabilising Speculation' That Followed the Thai Government's Attempt to Peg

question 231

Multiple Choice

The 'destabilising speculation' that followed the Thai government's attempt to peg its currency to the US dollar resulted in Thailand abandoning its peg.The result was a(n) :

• A) appreciation of the baht relative to the US dollar and higher interest costs on dollar-denominated loans.
• B) appreciation of the baht relative to the US dollar and lower interest costs on dollar-denominated loans.
• C) depreciation of the baht relative to the US dollar and higher interest costs on dollar-denominated loans.
• D) depreciation of the baht relative to the US dollar and lower interest costs on dollar-denominated loans.

---

Definitions:

Norepinephrine

A neurotransmitter involved in arousal and the fight-or-flight response among other functions.

Serotonin

A neurotransmitter that contributes to feelings of well-being and happiness; it plays a key role in mood regulation, digestion, and sleep.

Reuptake

A process by which neurotransmitters released into the synapse are reabsorbed back into the neuron, effectively stopping their action on adjacent neurons.

Selective Serotonin Reuptake Inhibitors

A class of drugs typically used as antidepressants in the treatment of major depressive disorder and anxiety disorders.