The East Asian financial crisis of the 1990s: Showed how trade partners are unreliable Made countries stop investing in China since India was experiencing an economic boom and was opening up. Forced countries in the region to import more and export less. Was not caused by financial contagion Was associated with moral hazard and fixed exchange rates

Answers

Answer 1

Answer:

The East Asian Financial Crisis of the 1990s:

Was associated with moral hazard and fixed exchange rates.

Explanation:

The countries which suffered adverse distress from the financial crisis were Indonesia, South Korea, and Thailand.  The financial meltdown followed the collapse of the hot money bubble, whereby high interest rates and fixed foreign exchange rates were pegged to the U.S. dollars by these mostly exporting countries.  The practice largely favored these Asian exporters until the bubble burst, starting from July of 1997.  And the consequences and lessons now remain Economics and History topics.


Related Questions

James, a cash basis taxpayer, received the following compensation and fringe benefits in the current year: Salary $66,000 Disability income protection premiums 3,000 Long-term care insurance premiums 4,000 His actual salary was $72,000. He received only $66,000 because his salary was garnished and the employer paid the $6,000 owed on James's credit card. The wage continuation insurance is available to all employees and pays the employee three-fourths of the regular salary if the employee is sick or disabled. The long-term care insurance is available to all employees and pays $150 per day toward a nursing home or similar facility. What is James's gross income from the above

Answers

Answer: $72,000

Explanation:

Gross income simply refers to the total income that is earned by an individual before taxes and every other deductions are made from the income earned. Gross income include wages, salaries, dividends, rental income, and interest income.

Based on the above explanation, James's gross income from the above will be $72000 which is his actual salary. This means the actual salary consist of every other income since his salary is $66000.

Branch Company, a building materials supplier, has $18,400,000 of notes payable due April 12, 2022. At December 31, 2021, Branch signed an agreement with First Bank to borrow up to $18,400,000 to refinance the notes on a long-term basis. The agreement specified that borrowings would not exceed 70% of the value of the collateral that Branch provided. At the date of issue of the December 31, 2021, financial statements, the value of Branch's collateral was $19,600,000. On its December 31, 2021, balance sheet, Branch should classify the notes as follows:

a. $18,400,000 of long-term liabilities.
b. $18,400,000 of current liabilities.
c. $3,680,000 long-term and $14,720,000 current liabilities.
d. $15,680,000 long-term and $2,720,000 current liabilities.

Answers

Answer:

The answer is "Choice d"

Explanation:

Please find the complete question in the attached file.

Follows are the calculation to this question:  

The notes on payable= [tex]\$18,400,000[/tex]

Calculating the Refinancing ability:

[tex]=\$ 19,600,000 \times 80\% \\\\ = \$ 19,600,000 \times \frac{80}{100} \\\\ = \$ 196,000 \times 80 \\\\ =\$15,680,000[/tex]

The current liability=  [tex]\$2,720,000[/tex]

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