International Financial Management mcq set 3

81. The exchange rate mechanism (ERM) crisis in 1992 represents the ___ in German interest rates that caused other European interest rates to ___ , and resulted in less aggregate spending.A. increase; increaseB. increase; decreaseC. decrease; decreaseD. decrease; increase AnswerA. increase; increase 82. As foreign exchange activity has grown:A. central bank intervention has become more…

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