As the Asian financial crisis of 1997 began to spread, it became obvious to investors that Korean investments would provide lower returns than expected. What was the impact of such a realization on the foreign exchange market?
a. The supply of Korean won decreased as people tried to withdraw their Korean investments.
b. The price of dollar in terms of Korean currency decreased as people invested more in U.S. assets.
c. The demand for dollars decreased as investors realized that there is a worldwide crisis going on.
d. The demand for dollars increased as investors put their money in U.S. and other foreign assets.
e. The demand for Korean won increased as investors decided to invest in Korean assets.
d
You might also like to view...
Which of the following antebellum transportation innovations was financed primarily by government funds?
a. the Erie Canal b. the New Orleans steamboat c. the Lancaster Turnpike d. the Ann McKim clipper ship
Suppose the growth rate of the firm's profit is 4 percent, the interest rate is 5 percent, and the current profits of the firm are $75 million. What is the value of the firm?
A. $2,111.5 million B. $10,600 million C. $7,766.6 million D. None of the statements associated with this question are correct.