Identify the 5 correct statements
1. Portfolio investment comprise both equity and bond investments.
2. The global interbank market is the market where banks lend to corporations worldwide.
3. Global finance contributes to a globally optimal allocation of capital.
4. Sudden stops can constitute a major risk in foreign finance.
5. The term "twin crisis" is used to signify a currency crisis that occurs in two countries at the same time.
6. When expecting a currency devaluation, a (temporary) purchase of foreign currency can be profitable.
7. A country can defend its currency by lowering interest rates.
8. A key factor for the EMS crisis of 1992/93 was that EMS member countries preferred a devaluation of their currencies over high interest rates.
9. It is undisputed among economist that excessive government budget deficits in southern EMU member countries are the cause of the eurozone crisis.
10. Joint risk sharing in the EMU would make the currency union even more unstable.

Question

Identify the 5 correct statements 
1. Portfolio investment comprise both equity and bond investments.
2. The global interbank market is the market where banks lend to corporations worldwide.
3. Global finance contributes to a globally optimal allocation of capital.
4. Sudden stops can constitute a major risk in foreign finance.
5. The term "twin crisis" is used to signify a currency crisis that occurs in two countries at the same time.
6. When expecting a currency devaluation, a (temporary) purchase of foreign currency can be profitable.
7. A country can defend its currency by lowering interest rates.
8. A key factor for the EMS crisis of 1992/93 was that EMS member countries preferred a devaluation of their currencies over high interest rates.
9. It is undisputed among economist that excessive government budget deficits in southern EMU member countries are the cause of the eurozone crisis.
10. Joint risk sharing in the EMU would make the currency union even more unstable.

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The Answer of Identify the 5 correct statements 
1. Portfolio investment comprise both equity and bond investments.
2. The global interbank market is the market where banks lend to corporations worldwide.
3. Global finance contributes to a globally optimal allocation of capital.
4. Sudden stops can constitute a major risk in foreign finance.
5. The term "twin crisis" is used to signify a currency crisis that occurs in two countries at the same time.
6. When expecting a currency devaluation, a (temporary) purchase of foreign currency can be profitable.
7. A country can defend its currency by lowering interest rates.
8. A key factor for the EMS crisis of 1992/93 was that EMS member countries preferred a devaluation of their currencies over high interest rates.
9. It is undisputed among economist that excessive government budget deficits in southern EMU member countries are the cause of the eurozone crisis.
10. Joint risk sharing in the EMU would make the currency union even more unstable.

Identify the 5 Correct Statements