One implication of a currency crisis is that
A) it occurs due to a sharp appreciation in the value of a currency.
B) it forces authorities to block large volumes of international currency reserves.
C) a country in currency crisis is not eligible for loans from the International Monetary Fund.
D) it results in the government sharply increasing interest rates to defend the prevailing exchange rate.
E) a country in currency crisis faces sharp decreases in stock and property prices.

Question

Quizplus · Accepted Answer

During a currency crisis, governments often increase interest rates to defend the currency's value and prevent further depreciation.

One Implication of a Currency Crisis Is That