Mexico's peso crisis in 1994-95 was a surprise for each of the following reasons except

Question

Quizplus · Accepted Answer

The Mexico peso crisis of 1994-95 was surprising for several reasons, but low profits from investing in Mexico were not among them. The crisis was unexpected mainly because the government had a balanced budget, inflation was not anticipated to rise significantly, and there was no doubt about the government's willingness to increase interest rates to stabilize the currency. The profitability of investments in Mexico, whether high or low, was not a direct factor in the surprise surrounding the crisis.

Mexico's Peso Crisis in 1994-95 Was a Surprise for Each