A) poor supervision of the banking system.
B) a lending boom prior to the crisis.
C) fiscal imbalances.
D) lack of expertise in screening and monitoring borrowers at banking institutions.
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.
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.
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.
An important factor leading up to the Mexican financial crisis of 1994-1995 was
A) the failure of the Mexican oil monopoly.
B) increasing loan losses at Mexican banks.
C) the ratification of the North American Free Trade Agreement.
D) the failure to ratify the North American Free Trade Agreement.