Factors that led to worsening conditions in Mexico's 1994-1995 financial markets included ________.
A)fall in interest rates abroad
B)a large increase in lending
C)decreases in the price level
D)strong supervision by bank regulators

Question

Quizplus · Accepted Answer

The large increase in lending led to a buildup of debt and a subsequent inability to repay loans, contributing to the worsening conditions in Mexico's financial markets. The other options (fall in interest rates abroad, decreases in the price level, and strong supervision by bank regulators) do not directly contribute to the worsening conditions.

Factors That Led to Worsening Conditions in Mexico's 1994-1995 Financial