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Question
Which of the following statements is true about financial crises?
A. The elements of currency, banking, and debt crises do not present themselves simultaneously.
B. A currency crisis forces authorities to hold large volumes of international currency reserves.
C. A foreign debt crisis occurs when a country's foreign debt obligations in private-sector government debt cannot be serviced.
D. A banking crisis occurs when individuals and companies increase their deposits due to increasing interest rates.
E. The International Monetary Fund does not grant loans to countries that face the risks of financial crises.
Answer
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