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Which of the Following Was NOT a Cause or a Characteristic

Question 22

Multiple Choice

Which of the following was NOT a cause or a characteristic of the 1994/95 Mexican peso crisis?


A) An overvalued exchange rate
B) An inflow of large foreign portfolio capital
C) The inability of the IMF, the world bank, and the NAFTA member countries (i.e., the United States and Canada) to predict the looming financial crisis
D) Shifts by the world capital markets toward more conservative and risk-averse investments because of interest and exchange rate movements around the world

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