Which of the Following Is Not True Regarding the Mexican

Multiple Choice

Which of the following is not true regarding the Mexican peso crisis?

A) Mexico encouraged firms and consumers to buy an excessive amount of imports because the peso was stronger than it should have been.
B) Many speculators based in the United States speculated on the potential decline in the peso by investing their funds in Mexico.
C) In December 1994, the central bank of Mexico allowed the peso to float freely.
D) The central bank of Mexico increased interest rates after the peso declined in value in order to prevent investors from withdrawing their investments in Mexico's debt securities.
E) All of these are true.