Investors may be caught by surprise when devaluation occurs, particularly if the government does not disclose its international reserve position in a timely and informative manner.

Question

Quizplus · Accepted Answer

The statement is true as investors rely on knowing the government's international reserve position to gauge the likelihood of devaluation, and if this information is not disclosed in a timely and informative manner, they may be caught off guard by the devaluation.

Investors May Be Caught by Surprise When Devaluation Occurs, Particularly