The Reason for the Concurrence of Exchange Rate Crises and Other

question 90

Multiple Choice

The reason for the concurrence of exchange rate crises and other financial disruptions centers on:

• A) the inherent instability of most banks in low-income nations.
• B) the tendency of most elected officials to be susceptible to influence and corruption.
• C) the fact that changes in exchange rates can raise debt burdens (denominated in other currencies) to intolerable levels.
• D) the tendency of the current administration to react by nationalizing banks and implementing capital controls.

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