The Mexican peso crisis of 1994-1995 was caused partially by
A)a domestic boom in Japan that caused increased capital flows into Mexico.
B)an increase in U.S. interest rates orchestrated by the Fed.
C)increased capital flows into Mexico.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

The Mexican peso crisis was partially caused by an increase in U.S. interest rates, which led to capital outflows from Mexico as investors sought higher returns in the U.S.

The Mexican Peso Crisis of 1994-1995 Was Caused Partially by