The problem of currency mismatch of net external wealth can be mitigated by:
A) ensuring the creditor countries always denominate loans in U.S. dollars.
B) promoting internal financial markets where foreign securities can be traded.
C) restricting borrowing yet encouraging lending.
D) piling up large stocks of foreign currency assets in central bank reserves and sovereign wealth funds.
Ans: D) piling up large stocks of foreign currency assets in central bank reserves and sovereign wealth funds.
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