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Question
What weakness in the economic structures of Asian countries contributed to the severe financial crisis that Asian economies experienced in 1997?
A) Productivity: It increased rapidly and the countries were victims of their own success
B) Banking regulation: Banks were excessively regulated, which reduced profits.
C) Legal Framework: The system dealt unsuccessfully with companies in financial trouble
D) Natural Resources: Countries' lack of natural resources and failure to explore developing industries accumulated and led to the crisis.
E) High Taxes: High rates of taxation resulted in a reliance on imports.
Answer
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Related questions
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B) the international trade side of the international economy.
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B) future contracts bind you into your end of the deal.
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B) A depreciation of a country's currency makes its goods more expensive for foreigners.
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Discuss the effects of a rise in the dollar interest rate on the exchange rate.
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A) The interest rate is not the prime target of monetary policy.
B) Most central banks adjust their policy interest rates expressly so as to keep inflation in check.
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D) Inflation will increase the purchasing power of a currency.
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During hyperinflation, exploding inflation causes real money demand to
A) fall over time, and this additional monetary change makes money prices rise even more quickly than the money supply itself rises.
B) increase over time, and this additional monetary change makes money prices rise even more quickly than the money supply itself rises.
C) fall over time, and this additional monetary change makes money prices decrease even more quickly than the money supply itself rises.
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B) change only as a result of demographic trends.
C) change only as a result of financial innovations such as electronic cash-transfer facilities.
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E) a decrease in the average value of transactions carried out by a household or a firm causes its demand for real money to rise.
Q:
In the interest rate parity condition with imperfect substitutes and a risk premium of ρ
A) an increased stock of domestic government debt will raise the difference between the expected returns on domestic and foreign currency bonds.
B) a decreased stock of domestic government debt will raise the difference between the expected returns on domestic and foreign currency bonds.
C) an increased stock of domestic government debt will reduce the difference between the expected returns on domestic and foreign currency bonds.
D) an increased stock of domestic government debt will have no effect on the difference between the expected returns on domestic and foreign currency bonds.
E) a decreased stock of domestic government debt will have no effect on the difference between the expected returns on domestic and foreign currency bonds.
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B) when the expected returns on two assets are the same.
C) only when one asset is foreign and the other is domestic.
D) when there is risk in the foreign exchange market.
E) when assets are liquid.