The reliance on short-term foreign capital inflows in Asia preceding the financi
ID: 1196191 • Letter: T
Question
The reliance on short-term foreign capital inflows in Asia preceding the financial crisis
resulted in banks lending domestically and regionally at lower interest rates than the bank themselves were paying
was due to the inability to procure longer-term loans
made Asian banks vulnerable to repayment demands and devaluation effects
promoted short-term economic planning by Asian governments
1.resulted in banks lending domestically and regionally at lower interest rates than the bank themselves were paying
2.was due to the inability to procure longer-term loans
3.made Asian banks vulnerable to repayment demands and devaluation effects
4.promoted short-term economic planning by Asian governments
Explanation / Answer
The reliance on short term foreign capital inflows in asia perceding the financial crisis made asian banks vulnerable to repayment demands and devaluation effects.