**Question 7**A currency crisis may occur when:- A. there is a global financial crisis- B. there is strong economic growth- C. the country reduces its international borrowing- D. seasonal birds migrate to the south(Note: This question explores the potential causes of a currency crisis. Each option provides a different scenario, with options A and C being more relevant to economic conditions.)

A currency crisis may occur because of the rapid ups and downs in the value of the currency because of which investors hesitate to invest. This can occur due to the global financial crisis. This is because the global financial crisis makes the international market unstable due to a slowdown in the financial growth of the world. This makes the value of many currencies unstable. Thus, it leads to a financial crisis.Answer) there is a global financial crisis

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QUESTION 7 A currency crisis may occur when A. there is a global financial crisis B. there is strong economic growth C. the country reduces its international borrowing D. seasonal birds migrate to the south

QUESTION 7 A currency crisis may occur when A. there is a global financial crisis B. there is strong economic growth C. the country reduces its international borrowing D. seasonal birds migrate to the south

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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