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Sources of currency crises include: a) Weak financial systems b) Currency speculators c) Political factors d) All of above Question 26 (1 point) A firm
Sources of currency crises include: a) Weak financial systems b) Currency speculators c) Political factors d) All of above Question 26 (1 point) A firm that moves funds into foreign currencies to take advantage of higher investment yields abroad is a) engaging in interest arbitrage. b) engaging in futures markets. c) speculating- d) demonstrating purchasing power parity. Question 27 (1 point) Which of the following is a potential advantage of floating exchange rates? a) An unregulated market may discourage foreign trade and investment. b) Nations have greater freedom to pursue domestic policies. c) There may occur large amounts of destabilizing speculation. d) Monetary authorities may lack financial discipline
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