Which of the following is true of the crises witnessed by the southeast Asian countries in the 1990s?
A) The crises were sparked by the conversion from a fixed exchange rate regime to a flexible exchange rate regime.
B) The crises occurred because among all countries, Malaysia owed the maximum short-term debt to foreigners.
C) The consumption of petroleum products grew at an uncontrolled rate in Indonesia.
D) Indonesia was the only country that owed a substantial long-term debt to the US.
E) The stock prices dropped by 26 percent in Korea and by 57 percent in Malaysia.

Question

Quizplus · Accepted Answer

The statement that stock prices dropped by 26 percent in Korea and by 57 percent in Malaysia is true, as per the information given in the passage. Option A is incorrect as the crises occurred due to factors such as excessive borrowing and lending, weak financial regulation, and overvalued currencies, and not due to a shift in exchange rate regime. Option B, C, and D are all incorrect as they contain either inaccurate or irrelevant information.

Which of the Following Is True of the Crises Witnessed