The Best Explanation for the Late 1994/early 1995 Collapse of the Mexican

question 15

Multiple Choice

The best explanation for the late 1994/early 1995 collapse of the Mexican peso and stock market is

• A)free movement of capital internationally is destabilizing for a developing country.
• B)portfolio investments were camouflaging overvalued exchange rates.
• C)debt for equity swaps had created imbalances in the ownership structure of the economy.
• D)the potential benefits of NAFTA had been oversold.

---

Definitions:

Contract

An agreement between two or more parties creating enforceable obligations recognized by law.

Negligent Per Se

A legal doctrine whereby an act is considered negligent because it violates a statute or regulation, establishing liability regardless of the standard care used.

Comparative Negligence

A legal doctrine that reduces the amount of damages a plaintiff can recover in a negligence-based claim, based upon the degree to which the plaintiff's own negligence contributed to the cause of their injury.

Assumption Of The Risk

A defense whereby the defendant must prove that the plaintiff voluntarily assumed the risk the defendant caused.