When Some Troubled Emerging-Market Nations Experience a Currency Crisis, It

question 41

Multiple Choice

When some troubled emerging-market nations experience a currency crisis, it affects other healthy emerging-market nations by raising risk premia and reducing investor confidence in the whole region portfolios. As a result, healthy emerging-market nations also prone to have a currency crisis as well. This phenomenon is known as:

• A) experiential learning
• B) contagion
• C) moral hazard
• D) emerging market dysfunction

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Definitions:

In Vitro

A process, experiment, or procedure performed in a controlled environment outside of a living organism.

Active Immunity

Immunity that results from the production of antibodies by the immune system in response to the presence of an antigen.

Chicken Cholera

A contagious bacterial disease affecting chickens, characterized by severe respiratory distress, diarrhea, and high mortality.

Louis Pasteur

A French biologist renowned for his discoveries in the principles of vaccination, microbial fermentation, and pasteurization.