1- Kwans early warning system would most likely be better if it:

A) had a strong record of predicting actual crises, even if it generates a lot of false signals.

B) included a wide variety of economic indicators, including those for which data are available only with a significant lag.

C) started flashing well in advance of an actual currency crisis to give market participants time to adjust or hedge their portfolio before the crisis hits.

2) Prior to July 2, 1997, the Thai government:

A) allowed the Thai Bhat to float against major currencies.

B) fixed the Bhat's value against the Korean won only.

C) fixed the Bhat's value against major currencies especially the U.S. dollar.

D) none of the above

3) Argentina's economic performance in the 1990s while their peso was pegged to the U.S. dollar can be characterized as ________ rates of inflation and ________ rates of unemployment.

A) high; high

B) low; low

C) low; high

D) high; low

4) Which of the following did NOT contribute to the Russian currency crisis of 1998?

A) an accelerated flight of capital

B) generally deteriorating economic conditions

C) a surprisingly healthy government surplus that was neither funding internal investment nor external debt service

D) all of the above