In Stage Three of a Financial Crisis in an Emerging

Multiple Choice

In Stage Three of a financial crisis in an emerging market economy,the currency mismatch refers to ________.

A) the mismatch between size of the actual notes and the high price levels need to buy basic goods
B) the difference in the currency FX markets over time
C) the mismatch between the currency of the stock and bond markets
D) the fact that most debt in emerging market economies is denominated in U.S. dollars