Which of the following is an implication of a currency crisis? A. It

QUESTION

Which of the following is an implication of a currency crisis?

A. It occurs due to a sharp appreciation in the value of a currency.

B. It forces authorities to block large volumes of international currency reserves.

C. A country in currency crisis is not eligible for loans from the International Monetary Fund.

D. It results in the government sharply increasing interest rates to defend the prevailing exchange rate.

E. A country in currency crisis faces sharp decreases in stock and property prices.

ANSWER

D