Financial crises in emerging-market economies generally develop along two basic paths: ________.
A)mismanagement of financial liberalization/globalization and severe fiscal imbalances
B)stock market declines and severe fiscal imbalances
C)mismanagement of financial liberalization/globalization and stock market declines
D)stock market declines and unanticipated declines in the value of the domestic currency

Question

Quizplus · Accepted Answer

Financial crises in emerging-market economies often arise from mismanagement of financial liberalization/globalization, leading to excessive risk-taking and vulnerabilities, and severe fiscal imbalances, which can undermine economic stability.

Financial Crises in Emerging-Market Economies Generally Develop Along Two Basic