the economics of money, banking, and financial markets

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12. 
    

    An important factor leading up to the Mexican financial crisis of 1994-1995 was ____.
    A) the failure of the Mexican oil monopoly
    B) increasing loan losses at Mexican banks
    C) the ratification of the North American Free Trade Agreement
    D) the failure to ratify the North American Free Trade Agreement
    Answer: B
    Diff: 1 Type: MC Page Ref: 205
    Skill: Recall
    Objective List: 9.3 Discuss the most recent financial crisis

    
    


13. 
    

    Factors that led to worsening conditions in Mexico's 1994-1995 financial markets included
    ____.
    A) strong supervision by bank regulators
    B) bankers' lack of expertise in screening and monitoring borrowers
    C) improvement of banks' balance sheets because of decreasing loan losses
    D) decrease in interest rates
    Answer: B
    Diff: 2 Type: MC Page Ref: 205
    Skill: Recall
    Objective List: 9.3 Discuss the most recent financial crisis

    
    


14. 
    

    Factors that led to worsening conditions in Mexico's 1994-1995 financial markets included
    ____.
    A) fall in interest rates abroad
    B) a large increase in lending
    C) decreases in the price level
    D) strong supervision by bank regulators
    Answer: B
    Diff: 3 Type: MC Page Ref: 205
    Skill: Recall
    Objective List: 9.3 Discuss the most recent financial crisis

    
    


15. 
    

    Factors that led to worsening financial market conditions in East Asia in 1997-1998 included
    ____.
    A) weak supervision by bank regulators
    B) a rise in interest rates abroad
    C) unanticipated increases in the price level
    D) a decrease in interest rates
    Answer: A
    Diff: 2 Type: MC Page Ref: 204 - 205
    Skill: Recall
    Objective List: 9.3 Discuss the most recent financial crisis