Which of the following is an example of a speculative attack on a currency?
a. National governments decide to engage in competitive devaluations against a given country.
b. International organizations such as the WTO and the IMF attempt to reorder the currency's system.
c. Private investors sell domestic currency and buy foreign currency, betting that the domestic currency will soon be devaluated.
d. Casinos in Las Vegas allow the proliferation of bets for and against a given currency.
e. A country is at war, and the enemy country "freezes" all the accounts denominated in the local currency.
c
You might also like to view...
Which of the following are included in interest income? i. payments made for the use of land ii. income paid to households for loans they make iii. payments made by households for their borrowing
A) i, ii and iii B) ii and iii only C) i and ii only D) ii only E) iii only
If marginal cost is less than average total cost, then ________ is ________
A) average total cost; falling B) average variable cost; falling C) marginal cost; falling D) marginal cost; rising