The Devaluation of the British Pound in 1992 Was Due

Multiple Choice

The devaluation of the British pound in 1992 was due to ________ and hedge funds ________ the U.K. pound.

A) higher inflation rates in Germany than in Britain; "shorted"
B) low unemployment rates in Britain; bought
C) the first Gulf War; gambled in favor of
D) a deep recession in France; sold French francs to buy
E) Swedish interest rates falling dramatically; sold