As the Asian financial crisis of 1997 began to spread, it became obvious to investors that Korean investments would provide lower returns than expected. What was the impact of such a realization on the foreign exchange market?
a. The supply of Korean won decreased as people tried to withdraw their Korean investments.
b. The price of dollar in terms of Korean currency decreased as people invested more in U.S. assets.
c. The demand for dollars decreased as investors realized that there is a worldwide crisis going on.
d. The demand for dollars increased as investors put their money in U.S. and other foreign assets.
e. The demand for Korean won increased as investors decided to invest in Korean assets.
d
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The impact effect is the
A) zero period dynamic multiplier. B) h period dynamic multiplier, h>0. C) cumulative dynamic multiplier. D) long-run cumulative dynamic multiplier.
Educational reforms that result in improved reading and math skills of high school graduates as they enter the labor force would do what to the aggregate supply curve?
a. Shift it outward. b. Shift it inward. c. Move the economy up along the curve. d. Move the economy down along the curve.
The U.S. dollar: a. is the most ancient form of money
b. is an example of modern money. c. is backed by gold. d. is accepted everywhere around the world.
The unemployment rate:
a. Always falls when the employment rate rises. b. Always rises when the employment rate rises. c. Is considered to be a poorer measure of business cycle activity than the employment rate. d. Tends to be more stable than the employment rate. e. None of the above.