If the banking sector borrows internationally and lends locally, how does this intensify a financial crisis?
What will be an ideal response?
The borrowed funds have to be repaid with appreciating international currencies while payments received come in the depreciating local currency.
Economics
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An event is productive as long as
A) it is incurred without any opportunity cost. B) it increases wealth. C) the value of the inputs exactly equals the value of the output. D) it creates a new material object. E) all of the above are true.
Economics
The demand for Canadian cheese by a U.S. store is also a
A) demand for Canadian dollars. B) demand for SDRs. C) supply of U.S. dollars. D) supply of Canadian dollars.
Economics