Financial Crisis

Question 1

2 reasons caused Asian Financial crisis

Answer 1

1. Exposure to foreign exchange risks with US recovery

2. Bad monetary policies

Question 2

Explain what is bad monetary policies?

Answer 2

Lack of enforcement of prudential rules and inadequate financial systems

Question 3

Bad monetary policies result in?

Answer 3

Large quantities of credits, generating a high-leveraged Eco climate

Question 4

2 reasons led to US subprime crisis

Answer 4

1. Bad monetary policies

2 unscrupulous policies by bank