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Directions: Read the passage carefully and answer the questions.The causes of the Asian Financial Crisis are complicated and disputable. A major cause is considered to be the collapse of the hot money bubble. During the late 1980s and early 1990s, many Southeast Asian Countries, including Thailand, Singapore, Malaysia, Indonesia, and South Korea, achieved massive economic growth of an 8% to 12% increase in their Gross Domestic Product (GDP). The achievement was known as the "Asian Economic Miracle". However, a significant risk was embedded in the achievement.The economic development in the Countries mentioned above were mainly boosted by export growth and foreign investment. Therefore, high-interest rates and fixed currency exchange rates (pegged to the U.S. dollar) were implemented to attract hot money. Also, the exchange rate was pegged at a rate favorable to exporters. However, both the capital market and corporates were left exposed to foreign exchange risk due to the fixed currency exchange rate policy.In the mid-1900s, following the recovery of the U.S. from a recession, the Federal Reserve raised the interest rate against inflation. The higher interest rate attracted hot money to flow into the U.S. market leading to an appreciation of the U.S. dollar.The currencies pegged to the U.S. dollar also appreciated, and thus hurt export growth with a shock in both export and foreign investment, asset prices, which were leveraged by large amounts of credits, began to collapse. The panicked foreign investors began to withdraw. This translated into increased demand for US dollars. Further, there was no perceptible increase in the supply of dollars as wary investors shied away from investing in these economies. With demand being greater than supply, the US dollar appreciated with the domestic currency depreciating. The depreciation of the local currencies fuelled more investments being pulled out of these economies thus resulting in a crisis.Thus Thai Government first ran out of foreign currency to supports its exchange rate, forcing it to float the baht.The value of the baht thus collapsed immediately afterward. The same also happened to the rest of the Asian Countries soon after.Q. The likely reason for investor s from Western Countries pulling out their investments from these nations was:a)The returns on their inv estments were falling as their domestic currency was depreciating.b)The returns on their inv estments were falling as their domestic currency was appreciating.c)The returns on their inv estments was expected to rise in the near future.d)They wanted to take their inv estments back to their own respective nations.Correct answer is option 'A'. Can you explain this answer? for Humanities/Arts 2024 is part of Humanities/Arts preparation. The Question and answers have been prepared according to the Humanities/Arts exam syllabus. Information about Directions: Read the passage carefully and answer the questions.The causes of the Asian Financial Crisis are complicated and disputable. A major cause is considered to be the collapse of the hot money bubble. During the late 1980s and early 1990s, many Southeast Asian Countries, including Thailand, Singapore, Malaysia, Indonesia, and South Korea, achieved massive economic growth of an 8% to 12% increase in their Gross Domestic Product (GDP). The achievement was known as the "Asian Economic Miracle". However, a significant risk was embedded in the achievement.The economic development in the Countries mentioned above were mainly boosted by export growth and foreign investment. Therefore, high-interest rates and fixed currency exchange rates (pegged to the U.S. dollar) were implemented to attract hot money. Also, the exchange rate was pegged at a rate favorable to exporters. However, both the capital market and corporates were left exposed to foreign exchange risk due to the fixed currency exchange rate policy.In the mid-1900s, following the recovery of the U.S. from a recession, the Federal Reserve raised the interest rate against inflation. The higher interest rate attracted hot money to flow into the U.S. market leading to an appreciation of the U.S. dollar.The currencies pegged to the U.S. dollar also appreciated, and thus hurt export growth with a shock in both export and foreign investment, asset prices, which were leveraged by large amounts of credits, began to collapse. The panicked foreign investors began to withdraw. This translated into increased demand for US dollars. Further, there was no perceptible increase in the supply of dollars as wary investors shied away from investing in these economies. With demand being greater than supply, the US dollar appreciated with the domestic currency depreciating. The depreciation of the local currencies fuelled more investments being pulled out of these economies thus resulting in a crisis.Thus Thai Government first ran out of foreign currency to supports its exchange rate, forcing it to float the baht.The value of the baht thus collapsed immediately afterward. The same also happened to the rest of the Asian Countries soon after.Q. The likely reason for investor s from Western Countries pulling out their investments from these nations was:a)The returns on their inv estments were falling as their domestic currency was depreciating.b)The returns on their inv estments were falling as their domestic currency was appreciating.c)The returns on their inv estments was expected to rise in the near future.d)They wanted to take their inv estments back to their own respective nations.Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for Humanities/Arts 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Directions: Read the passage carefully and answer the questions.The causes of the Asian Financial Crisis are complicated and disputable. A major cause is considered to be the collapse of the hot money bubble. During the late 1980s and early 1990s, many Southeast Asian Countries, including Thailand, Singapore, Malaysia, Indonesia, and South Korea, achieved massive economic growth of an 8% to 12% increase in their Gross Domestic Product (GDP). The achievement was known as the "Asian Economic Miracle". However, a significant risk was embedded in the achievement.The economic development in the Countries mentioned above were mainly boosted by export growth and foreign investment. Therefore, high-interest rates and fixed currency exchange rates (pegged to the U.S. dollar) were implemented to attract hot money. Also, the exchange rate was pegged at a rate favorable to exporters. However, both the capital market and corporates were left exposed to foreign exchange risk due to the fixed currency exchange rate policy.In the mid-1900s, following the recovery of the U.S. from a recession, the Federal Reserve raised the interest rate against inflation. The higher interest rate attracted hot money to flow into the U.S. market leading to an appreciation of the U.S. dollar.The currencies pegged to the U.S. dollar also appreciated, and thus hurt export growth with a shock in both export and foreign investment, asset prices, which were leveraged by large amounts of credits, began to collapse. The panicked foreign investors began to withdraw. This translated into increased demand for US dollars. Further, there was no perceptible increase in the supply of dollars as wary investors shied away from investing in these economies. With demand being greater than supply, the US dollar appreciated with the domestic currency depreciating. The depreciation of the local currencies fuelled more investments being pulled out of these economies thus resulting in a crisis.Thus Thai Government first ran out of foreign currency to supports its exchange rate, forcing it to float the baht.The value of the baht thus collapsed immediately afterward. The same also happened to the rest of the Asian Countries soon after.Q. The likely reason for investor s from Western Countries pulling out their investments from these nations was:a)The returns on their inv estments were falling as their domestic currency was depreciating.b)The returns on their inv estments were falling as their domestic currency was appreciating.c)The returns on their inv estments was expected to rise in the near future.d)They wanted to take their inv estments back to their own respective nations.Correct answer is option 'A'. Can you explain this answer?.

Solutions for Directions: Read the passage carefully and answer the questions.The causes of the Asian Financial Crisis are complicated and disputable. A major cause is considered to be the collapse of the hot money bubble. During the late 1980s and early 1990s, many Southeast Asian Countries, including Thailand, Singapore, Malaysia, Indonesia, and South Korea, achieved massive economic growth of an 8% to 12% increase in their Gross Domestic Product (GDP). The achievement was known as the "Asian Economic Miracle". However, a significant risk was embedded in the achievement.The economic development in the Countries mentioned above were mainly boosted by export growth and foreign investment. Therefore, high-interest rates and fixed currency exchange rates (pegged to the U.S. dollar) were implemented to attract hot money. Also, the exchange rate was pegged at a rate favorable to exporters. However, both the capital market and corporates were left exposed to foreign exchange risk due to the fixed currency exchange rate policy.In the mid-1900s, following the recovery of the U.S. from a recession, the Federal Reserve raised the interest rate against inflation. The higher interest rate attracted hot money to flow into the U.S. market leading to an appreciation of the U.S. dollar.The currencies pegged to the U.S. dollar also appreciated, and thus hurt export growth with a shock in both export and foreign investment, asset prices, which were leveraged by large amounts of credits, began to collapse. The panicked foreign investors began to withdraw. This translated into increased demand for US dollars. Further, there was no perceptible increase in the supply of dollars as wary investors shied away from investing in these economies. With demand being greater than supply, the US dollar appreciated with the domestic currency depreciating. The depreciation of the local currencies fuelled more investments being pulled out of these economies thus resulting in a crisis.Thus Thai Government first ran out of foreign currency to supports its exchange rate, forcing it to float the baht.The value of the baht thus collapsed immediately afterward. The same also happened to the rest of the Asian Countries soon after.Q. The likely reason for investor s from Western Countries pulling out their investments from these nations was:a)The returns on their inv estments were falling as their domestic currency was depreciating.b)The returns on their inv estments were falling as their domestic currency was appreciating.c)The returns on their inv estments was expected to rise in the near future.d)They wanted to take their inv estments back to their own respective nations.Correct answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for Humanities/Arts. Download more important topics, notes, lectures and mock test series for Humanities/Arts Exam by signing up for free.

Here you can find the meaning of Directions: Read the passage carefully and answer the questions.The causes of the Asian Financial Crisis are complicated and disputable. A major cause is considered to be the collapse of the hot money bubble. During the late 1980s and early 1990s, many Southeast Asian Countries, including Thailand, Singapore, Malaysia, Indonesia, and South Korea, achieved massive economic growth of an 8% to 12% increase in their Gross Domestic Product (GDP). The achievement was known as the "Asian Economic Miracle". However, a significant risk was embedded in the achievement.The economic development in the Countries mentioned above were mainly boosted by export growth and foreign investment. Therefore, high-interest rates and fixed currency exchange rates (pegged to the U.S. dollar) were implemented to attract hot money. Also, the exchange rate was pegged at a rate favorable to exporters. However, both the capital market and corporates were left exposed to foreign exchange risk due to the fixed currency exchange rate policy.In the mid-1900s, following the recovery of the U.S. from a recession, the Federal Reserve raised the interest rate against inflation. The higher interest rate attracted hot money to flow into the U.S. market leading to an appreciation of the U.S. dollar.The currencies pegged to the U.S. dollar also appreciated, and thus hurt export growth with a shock in both export and foreign investment, asset prices, which were leveraged by large amounts of credits, began to collapse. The panicked foreign investors began to withdraw. This translated into increased demand for US dollars. Further, there was no perceptible increase in the supply of dollars as wary investors shied away from investing in these economies. With demand being greater than supply, the US dollar appreciated with the domestic currency depreciating. The depreciation of the local currencies fuelled more investments being pulled out of these economies thus resulting in a crisis.Thus Thai Government first ran out of foreign currency to supports its exchange rate, forcing it to float the baht.The value of the baht thus collapsed immediately afterward. The same also happened to the rest of the Asian Countries soon after.Q. The likely reason for investor s from Western Countries pulling out their investments from these nations was:a)The returns on their inv estments were falling as their domestic currency was depreciating.b)The returns on their inv estments were falling as their domestic currency was appreciating.c)The returns on their inv estments was expected to rise in the near future.d)They wanted to take their inv estments back to their own respective nations.Correct answer is option 'A'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of Directions: Read the passage carefully and answer the questions.The causes of the Asian Financial Crisis are complicated and disputable. A major cause is considered to be the collapse of the hot money bubble. During the late 1980s and early 1990s, many Southeast Asian Countries, including Thailand, Singapore, Malaysia, Indonesia, and South Korea, achieved massive economic growth of an 8% to 12% increase in their Gross Domestic Product (GDP). The achievement was known as the "Asian Economic Miracle". However, a significant risk was embedded in the achievement.The economic development in the Countries mentioned above were mainly boosted by export growth and foreign investment. Therefore, high-interest rates and fixed currency exchange rates (pegged to the U.S. dollar) were implemented to attract hot money. Also, the exchange rate was pegged at a rate favorable to exporters. However, both the capital market and corporates were left exposed to foreign exchange risk due to the fixed currency exchange rate policy.In the mid-1900s, following the recovery of the U.S. from a recession, the Federal Reserve raised the interest rate against inflation. The higher interest rate attracted hot money to flow into the U.S. market leading to an appreciation of the U.S. dollar.The currencies pegged to the U.S. dollar also appreciated, and thus hurt export growth with a shock in both export and foreign investment, asset prices, which were leveraged by large amounts of credits, began to collapse. The panicked foreign investors began to withdraw. This translated into increased demand for US dollars. Further, there was no perceptible increase in the supply of dollars as wary investors shied away from investing in these economies. With demand being greater than supply, the US dollar appreciated with the domestic currency depreciating. The depreciation of the local currencies fuelled more investments being pulled out of these economies thus resulting in a crisis.Thus Thai Government first ran out of foreign currency to supports its exchange rate, forcing it to float the baht.The value of the baht thus collapsed immediately afterward. The same also happened to the rest of the Asian Countries soon after.Q. The likely reason for investor s from Western Countries pulling out their investments from these nations was:a)The returns on their inv estments were falling as their domestic currency was depreciating.b)The returns on their inv estments were falling as their domestic currency was appreciating.c)The returns on their inv estments was expected to rise in the near future.d)They wanted to take their inv estments back to their own respective nations.Correct answer is option 'A'. Can you explain this answer?, a detailed solution for Directions: Read the passage carefully and answer the questions.The causes of the Asian Financial Crisis are complicated and disputable. A major cause is considered to be the collapse of the hot money bubble. During the late 1980s and early 1990s, many Southeast Asian Countries, including Thailand, Singapore, Malaysia, Indonesia, and South Korea, achieved massive economic growth of an 8% to 12% increase in their Gross Domestic Product (GDP). The achievement was known as the "Asian Economic Miracle". However, a significant risk was embedded in the achievement.The economic development in the Countries mentioned above were mainly boosted by export growth and foreign investment. Therefore, high-interest rates and fixed currency exchange rates (pegged to the U.S. dollar) were implemented to attract hot money. Also, the exchange rate was pegged at a rate favorable to exporters. However, both the capital market and corporates were left exposed to foreign exchange risk due to the fixed currency exchange rate policy.In the mid-1900s, following the recovery of the U.S. from a recession, the Federal Reserve raised the interest rate against inflation. The higher interest rate attracted hot money to flow into the U.S. market leading to an appreciation of the U.S. dollar.The currencies pegged to the U.S. dollar also appreciated, and thus hurt export growth with a shock in both export and foreign investment, asset prices, which were leveraged by large amounts of credits, began to collapse. The panicked foreign investors began to withdraw. This translated into increased demand for US dollars. Further, there was no perceptible increase in the supply of dollars as wary investors shied away from investing in these economies. With demand being greater than supply, the US dollar appreciated with the domestic currency depreciating. The depreciation of the local currencies fuelled more investments being pulled out of these economies thus resulting in a crisis.Thus Thai Government first ran out of foreign currency to supports its exchange rate, forcing it to float the baht.The value of the baht thus collapsed immediately afterward. The same also happened to the rest of the Asian Countries soon after.Q. The likely reason for investor s from Western Countries pulling out their investments from these nations was:a)The returns on their inv estments were falling as their domestic currency was depreciating.b)The returns on their inv estments were falling as their domestic currency was appreciating.c)The returns on their inv estments was expected to rise in the near future.d)They wanted to take their inv estments back to their own respective nations.Correct answer is option 'A'. Can you explain this answer? has been provided alongside types of Directions: Read the passage carefully and answer the questions.The causes of the Asian Financial Crisis are complicated and disputable. A major cause is considered to be the collapse of the hot money bubble. During the late 1980s and early 1990s, many Southeast Asian Countries, including Thailand, Singapore, Malaysia, Indonesia, and South Korea, achieved massive economic growth of an 8% to 12% increase in their Gross Domestic Product (GDP). The achievement was known as the "Asian Economic Miracle". However, a significant risk was embedded in the achievement.The economic development in the Countries mentioned above were mainly boosted by export growth and foreign investment. Therefore, high-interest rates and fixed currency exchange rates (pegged to the U.S. dollar) were implemented to attract hot money. Also, the exchange rate was pegged at a rate favorable to exporters. However, both the capital market and corporates were left exposed to foreign exchange risk due to the fixed currency exchange rate policy.In the mid-1900s, following the recovery of the U.S. from a recession, the Federal Reserve raised the interest rate against inflation. The higher interest rate attracted hot money to flow into the U.S. market leading to an appreciation of the U.S. dollar.The currencies pegged to the U.S. dollar also appreciated, and thus hurt export growth with a shock in both export and foreign investment, asset prices, which were leveraged by large amounts of credits, began to collapse. The panicked foreign investors began to withdraw. This translated into increased demand for US dollars. Further, there was no perceptible increase in the supply of dollars as wary investors shied away from investing in these economies. With demand being greater than supply, the US dollar appreciated with the domestic currency depreciating. The depreciation of the local currencies fuelled more investments being pulled out of these economies thus resulting in a crisis.Thus Thai Government first ran out of foreign currency to supports its exchange rate, forcing it to float the baht.The value of the baht thus collapsed immediately afterward. The same also happened to the rest of the Asian Countries soon after.Q. The likely reason for investor s from Western Countries pulling out their investments from these nations was:a)The returns on their inv estments were falling as their domestic currency was depreciating.b)The returns on their inv estments were falling as their domestic currency was appreciating.c)The returns on their inv estments was expected to rise in the near future.d)They wanted to take their inv estments back to their own respective nations.Correct answer is option 'A'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice Directions: Read the passage carefully and answer the questions.The causes of the Asian Financial Crisis are complicated and disputable. A major cause is considered to be the collapse of the hot money bubble. During the late 1980s and early 1990s, many Southeast Asian Countries, including Thailand, Singapore, Malaysia, Indonesia, and South Korea, achieved massive economic growth of an 8% to 12% increase in their Gross Domestic Product (GDP). The achievement was known as the "Asian Economic Miracle". However, a significant risk was embedded in the achievement.The economic development in the Countries mentioned above were mainly boosted by export growth and foreign investment. Therefore, high-interest rates and fixed currency exchange rates (pegged to the U.S. dollar) were implemented to attract hot money. Also, the exchange rate was pegged at a rate favorable to exporters. However, both the capital market and corporates were left exposed to foreign exchange risk due to the fixed currency exchange rate policy.In the mid-1900s, following the recovery of the U.S. from a recession, the Federal Reserve raised the interest rate against inflation. The higher interest rate attracted hot money to flow into the U.S. market leading to an appreciation of the U.S. dollar.The currencies pegged to the U.S. dollar also appreciated, and thus hurt export growth with a shock in both export and foreign investment, asset prices, which were leveraged by large amounts of credits, began to collapse. The panicked foreign investors began to withdraw. This translated into increased demand for US dollars. Further, there was no perceptible increase in the supply of dollars as wary investors shied away from investing in these economies. With demand being greater than supply, the US dollar appreciated with the domestic currency depreciating. The depreciation of the local currencies fuelled more investments being pulled out of these economies thus resulting in a crisis.Thus Thai Government first ran out of foreign currency to supports its exchange rate, forcing it to float the baht.The value of the baht thus collapsed immediately afterward. The same also happened to the rest of the Asian Countries soon after.Q. The likely reason for investor s from Western Countries pulling out their investments from these nations was:a)The returns on their inv estments were falling as their domestic currency was depreciating.b)The returns on their inv estments were falling as their domestic currency was appreciating.c)The returns on their inv estments was expected to rise in the near future.d)They wanted to take their inv estments back to their own respective nations.Correct answer is option 'A'. Can you explain this answer? tests, examples and also practice Humanities/Arts tests.