warnings of a currency crisis
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Answer is 1. I got this correct b/c I assumed that reasons 2 and 1 are what happens during a currency crisis. I realize I am wrong because the cfa textbook says “The ratio of exports to imports (known as “the terms of trade”) often deteriorates before a crisis.” - page 572. so why isn’t statement 1 correct.
btw the justification given for why statement 1 is not correct is b/c “C is incorrect because Statement 1 is inaccurate. The trade balance displays no significant difference between its behavior in pre-crisis periods and in tranquil periods” totally confused.