1) Factors that led to worsening conditions in Mexico"s 1994-1995 financial markets include

A) failure of the Mexican oil monopoly.

B) the ratification of the North American Free Trade Agreement.

C) increased uncertainty from political shocks.

D) decline in interest rates.

2) Factors that led to worsening financial market conditions in East Asia in 1997-1998 include

A) weak supervision by bank regulators.

B) a rise in interest rates abroad.

C) unanticipated increases in the price level.

D) increased uncertainty from political shocks.

3) Factors that led to worsening conditions in Mexico"s 1994-1995 financial markets, but did not lead to worsening financial market conditions in East Asia in 1997-1998 include

A) rise in interest rates abroad.

B) bankers" lack of expertise in screening and monitoring borrowers.

C) deterioration of banks" balance sheets because of increasing loan losses.

D) stock market decline.