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Question
When some troubled emerging-market nations experience a currency crisis, it affects other healthy emerging-market nations by raising risk premia and reducing investor confidence in the whole region portfolios. As a result, healthy emerging-market nations also prone to have a currency crisis as well. This phenomenon is known as:
a. experiential learning
b. contagion
c. moral hazard
d. emerging market dysfunction
Answer
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Related questions
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In foreign exchange forecasting, what is a good forecast?
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c. When the forecast is high.
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Q:
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c. 6.67%
d. 12.5%