An exchange rate crisis is when:
A) the currency is stable.
B) the value of a currency declines dramatically.
C) the value of a currency increases dramatically.
D) a country fixes the price of its currency.

Question

Quizplus · Accepted Answer

An exchange rate crisis occurs when the value of a currency declines dramatically. This can happen due to various reasons such as economic turmoil, political instability, high inflation, or a sudden withdrawal of foreign investment. It can have severe consequences on the affected economy, including inflation, decreased purchasing power, and difficulties in trade and investment.

An Exchange Rate Crisis Is When