The best explanation for the late 1994/early 1995 collapse of the Mexican peso and stock market is
(a) free movement of capital internationally is destabilizing for a developing country.
(b) portfolio investments were camouflaging overvalued exchange rates.
(c) debt for equity swaps had created imbalances in the ownership structure of the economy.
(d) the potential benefits of NAFTA had been oversold.
B
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When the Fed is acting as fiscal agent for the Treasury, it will
A) buy securities from the Treasury, thereby providing the Treasury with money to pay the government's bills. B) receive and process bids for Treasury securities in preparation for the Treasury's auction of securities. C) serve as a lender of last resort. D) supply the Treasury with paper money whenever the Treasury does not have enough funds to meet its bills. E) supervise the Treasury by examining its books.
Under a gold standard in which France defined one franc to be worth 1/50th of an ounce of gold and the U.S. defined one dollar to be worth 1/10th of an ounce of gold, then
A. one U.S. dollar would exchange for five French francs. B. the French franc is worth only one-tenth as much as the dollar is worth. C. the U.S. dollar is valued at one-fifth of the French franc. D. on French franc would exchange for ten dollars.