An exchange rate crisis causes all of the following, EXCEPT:
A) a large and sudden depreciation of the currency.
B) economic hardships.
C) political turmoil.
D) a sharp appreciation of the currency.

Question

Quizplus · Accepted Answer

An exchange rate crisis typically leads to a sudden depreciation of the currency, which can cause economic hardships and political turmoil. It is highly unlikely to cause a sharp appreciation of the currency.

An Exchange Rate Crisis Causes All of the Following, EXCEPT