Which of the following is true of the crises witnessed by the southeast Asian countries in the 1990s?
A)The crises were sparked by the conversion from a fixed exchange rate regime to a flexible exchange rate regime.
B)The crises occurred because Malaysia owed substantial short-term debt to foreigners.
C)The consumption of petroleum products grew at an uncontrolled rate in Indonesia.
D)Indonesia was the only country that owed a substantial long term debt to the US.
E)The stock prices dropped by 26 percent in Korea and by 57 percent in Malaysia.

Question

Quizplus · Accepted Answer

The statement that stock prices dropped by 26 percent in Korea and by 57 percent in Malaysia is the only accurate statement among the given options. The Southeast Asian financial crisis of the 1990s was primarily caused by unsustainable levels of external borrowing, poor corporate governance, and speculative pressure on currencies, rather than the conversion from fixed to flexible exchange rates, growth in petroleum consumption, or long-term debts owed by Indonesia to the US.

Which of the Following Is True of the Crises Witnessed