safety net to safeguard the world financial system from the Asia-type o nternational Monetary Fund (IMF) and the World Bank should monitor ully disclose economic and financial information so that devaluation s

International Financial Management
14th Edition
ISBN:9780357130698
Author:Madura
Publisher:Madura
Chapter6: Government Influence On Exchange Rates
Section: Chapter Questions
Problem 30QA
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In an integrated world financial market, a financial crisis in a country can be quickly transmitted to other countries, causing a global crisis. What kind of measures would you propose
prevent the recurrence of an Asia-type crisis?
O a. There should be a multinational safety net to safeguard the world financial system from the Asia-type crisis.
O b. International institutions like the International Monetary Fund (IMF) and the Worid Bank should monitor problematic countries more closely and provide timely advice to those countries.
Oc. Countries should be required to fully disclose economic and financial information so that devaluation surprises can be prevented.
O d. All above.
Transcribed Image Text:In an integrated world financial market, a financial crisis in a country can be quickly transmitted to other countries, causing a global crisis. What kind of measures would you propose prevent the recurrence of an Asia-type crisis? O a. There should be a multinational safety net to safeguard the world financial system from the Asia-type crisis. O b. International institutions like the International Monetary Fund (IMF) and the Worid Bank should monitor problematic countries more closely and provide timely advice to those countries. Oc. Countries should be required to fully disclose economic and financial information so that devaluation surprises can be prevented. O d. All above.
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