The Russian crisis of 1998
A) occurred because of the inability of the Russian Government to lower the taxes.
B) ended when President Yeltsin announced there will be no devaluation.
C) was a culmination of continuing deterioration of economic conditions.
D) was a result of a sharp price increase of Russian export commodities.

Question

Quizplus · Accepted Answer

The Russian crisis of 1998 was caused by a culmination of continuing deterioration of economic conditions, including a decline in oil prices, a decrease in foreign investment, and an increase in government debt. It led to a devaluation of the ruble, default on government bonds, and a severe economic recession in Russia. The other options (A, B, and D) are incorrect as they do not accurately reflect the causes or outcomes of the crisis.

The Russian Crisis of 1998