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Which of the Following Is Correct

Question 55

Multiple Choice

Which of the following is correct?


A) The likelihood of an exchange rate crisis increases if a country is having a banking crisis.
B) The likelihood of an exchange rate crisis decreases if a country is having a banking and default crisis.
C) There is no relationship between an exchange rate crisis and banking or default crises.
D) When a banking or default crisis occurs, countries typically are forced to appreciate their currencies.

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