Which of the combinations of default, exchange rate, and banking crises occurred most frequently between 1970 and 2000?
A) default crisis only
B) default and exchange rate crises
C) default and banking crises
D) default, exchange rate, and banking crises

Question

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According to studies, the combination of default, exchange rate, and banking crises occurred most frequently between 1970 and 2000. This is often referred to as a "perfect storm" of economic crises, as it involves a significant reduction in the value of a country's currency, a banking system in distress, and the inability of the government to service its debts.

Which of the Combinations of Default, Exchange Rate, and Banking