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Which State Is Most Likely to Face a Currency Crisis

Question 10

Multiple Choice

Which state is most likely to face a currency crisis?


A) A state that imports more than it exports.
B) A country that devalues its currency often in response to inflation.
C) A country that maintains a fixed exchange rate in relation to gold.
D) A country that has a floating exchange rate.
E) A country that has a modest amount of debt.

Correct Answer:

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