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Factors that led to worsening financial market conditions in East Asia in 1997-1998 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) unanticipated increases in the price level
Answer: B
Diff: 3 Type: MC Page Ref: 204 - 205
Skill: Recall
Objective List: 9.3 Discuss the most recent financial crisis
Factors that led to worsening financial market conditions in East Asia in 1997-1998 included
____.
A) rise in interest rates abroad
B) bankers' lack of expertise in screening and monitoring borrowers
C) unanticipated increases in the price level
D) strong supervision by bank regulators
Answer: B
Diff: 2 Type: MC Page Ref: 204 - 205
Skill: Recall
Objective List: 9.3 Discuss the most recent financial crisis
Factors that led to worsening financial market conditions in East Asia in 1997-1998 included
____.
A) bankruptcy of large firms in South Korea and Thailand
B) the ratification of the East Asia Free Trade Agreement
C) bankers' expertise in screening and monitoring borrowers
D) unanticipated increases in the price level
Answer: A
Diff: 2 Type: MC Page Ref: 204 - 205
Skill: Recall
Objective List: 9.3 Discuss the most recent financial crisis
Factors that led to worsening conditions in Mexico's 1994-1995 financial markets, but did
not lead to worsening financial market conditions in East Asia in 1997-1998 included ____.
A) rise in interest rates abroad
B) bankers' lack of expertise in screening and monitoring borrowers
C) deterioration of banks' balance sheets because of increasing loan losses
D) unanticipated increases in the price level
Answer: A
Diff: 2 Type: MC Page Ref: 204 - 205
Skill: Recall
Objective List: 9.3 Discuss the most recent financial crisis