Which of the following is correct?
A) Exchange rate crises typically impose larger costs on advanced countries than on emerging market countries.
B) Exchange rate crises typically impose larger costs on emerging market countries than on advanced countries.
C) Exchange rate crises typically impose the same costs on advanced countries and on emerging market countries.
D) Exchange rate crises typically do not impose any costs on advanced countries.

Question

Quizplus · Accepted Answer

Exchange rate crises typically have a more severe impact on emerging market countries than on advanced countries because emerging market countries have weaker economic structures and are more vulnerable to external shocks. Advanced countries have more diversified economies and can better absorb the effects of exchange rate crises.

Which of the Following Is Correct