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.
Correct Answer:

Verified
Correct Answer:
Verified
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