The financial crises of the 1990s were caused by
A) fixed exchange rates.
B) falling international reserves.
C) lack of transparency.
D) short-term international investment.
E) all of these.

Question

Quizplus · Accepted Answer

The financial crises of the 1990s were caused by a combination of factors, including fixed exchange rates, falling international reserves, lack of transparency, and short-term international investment. All of these factors contributed to the instability and vulnerability of the affected economies. Fixed exchange rates made it difficult for countries to adjust to changes in the global economic environment, while falling international reserves left them with limited resources to weather economic shocks. Lack of transparency made it harder for investors to assess the risks of investing in these economies, while short-term international investment made it easier for speculative capital to flow in and out quickly, exacerbating the volatility of financial markets.

The Financial Crises of the 1990s Were Caused by