The "tequila effect" is a slang term used to describe a form of financial panic called:
A) run on the market.
B) speculation.
C) contrary investing.
D) contagion.

Question

Quizplus · Accepted Answer

The "tequila effect" describes a continent-wide financial panic that spread from Mexico to other countries in Latin America. This panic was caused by the devaluation of the Mexican peso, which led to a loss of confidence in several other Latin American countries, resulting in a contagion effect. Therefore, D - contagion is the best choice.

The "Tequila Effect" Is a Slang Term Used to Describe