Stage 2 Testing 2:True-False Statements
In this part of the test,you will read ten statements about the information presented in the lecture.First read the statement carefully.Then check your notes to decide whether the statement is true or false.If it is true,write a T in the blank space before the statement; if it is false,write an F in the blank.
1._______When Thai corporate firms and financial institutions borrowed heavily on the international markets,people were becoming skeptical of the country’s ability to repay the rising debt.
2._______What the Thai government did to prevent enormous capital outflow was to increase interest rates and buy the US dollars on the foreign exchange markets.
3._______The Philippi ne central bank defended the peso by lowering the overnight interest rate from 24% to 15% at the beginning of the crisis.
4._______All the“Tiger Economies”and“Dragon economies”implemented a fixed exchange rate system before the crisis broke out.
5._______The Hong Kong SAR government was the largest shareholder of some international corporations including HSBC.
6._______What started as a currency crisis in 1997 quickly turned into a region-wide economic crisis,as more and more companies were closed down and unemployment kept rising.
7._______Mexico,Brazil,Russia and Japan were hit hard by the Asian financial crisis as well.
8._______Banking and financial supervision tends to be more effective if governments take ownership in large commercial banks.
9._______The crisis economies were plagued by industries with overcapacity problems,unrealistic infrastructure development projects and inefficient state-owned enterprises prior to the crisis.
10._______Had the crisis economies abandoned their fixed peg before 1997,the financial crisis would have been avoided altogether.