Which of the following are true about the Southeast Asian currency crisis?

Question

Quizplus · Accepted Answer

The Southeast Asian currency crisis was preceded by several years of large capital inflows to Asia, which increased the vulnerability of the economies to sudden withdrawals of capital.

Answer: C
 During the crisis, Asian interest rates declined as central banks attempted to stimulate their economies and prevent further currency devaluations.

Option B is incorrect because there was no five-year recession preceding the crisis, and option D is incorrect because pegging to the Japanese yen was not a solution implemented to resolve the crisis.

Which of the Following Are True About the Southeast Asian