Factors likely to cause a financial crisis in emerging market countries include

Factors likely to cause a financial crisis in emerging market countries include 

A) fiscal imbalances.
B) decreases in foreign interest rates.
C) a foreign exchange crisis.
D) too strong oversight of the financial industry.

Answer: A

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MB Chapter 8

• Argentina's financial crisis was due to
• 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
• Factors that led to worsening financial market conditions in East Asia in 1997-1998 include
• Factors that led to worsening conditions in Mexico's 1994-1995 financial markets include
• An important factor leading up to the Mexican financial crisis of 1994-1995 was
• In recent years, a number of developing and transition countries have experienced financial crises, the most dramatic of which was the
• In emerging economies such as Argentina, government fiscal imbalances may cause fears of
• Adverse selection and moral hazard problems increased in magnitude during the early years of the Great Depression as
• A substantial decrease in the aggregate price level that reduces firms' net worth may stall a recovery from a recession. This process is called
• Debt deflation occurs when
• The sequence of events in a U.S. financial crisis is ________ leading to ________ leading to ________.
• If the anatomy of a financial crisis is thought of as a sequence of events, which of the following events would be least likely to be the initiating cause of the financial crisis?
• If the anatomy of a financial crisis is thought of as a sequence of events, which of the following events would be least likely to be the initiating cause of the financial crisis?
• Most major financial crises in the United States have begun with
• A bank panic can lead to a severe contraction in economic activity due to
• In a bank panic the source of contagion is the
• In addition to having a direct effect on increasing adverse selection problems, increases in interest rates also promote financial crises by ________ firms' and households' interest payments, thereby ________ their cash flow.
• Factors that lead to worsening conditions in financial markets include:
• One reason China has been able to grow so rapidly even though its financial development is still in its early stages is
• One reason financial systems in developing and transition countries are underdeveloped is
• The Global Legal Settlement of 2002 required investment banks to separate ________ and ________.
• The Sarbanes-Oxley Act of 2002 increased supervisory oversight by
• The practice of ________ is allocating initially underpriced initial public offerings to executives in companies the investment bank hopes to do underwriting business with in the future.
• Because conflicts of interest increase asymmetric information problems

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