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Which of the following is true of a banking crisis?


A) It leads to individuals and companies withdrawing their deposits from banks.
B) It results in a sharp appreciation in the value of the currency.
C) It happens due to a decline in domestic borrowing.
D) It occurs due to asset price deflation.
E) It results in low government deficits.

F) B) and D)
G) A) and B)

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The architects of the Bretton Woods agreement wanted to avoid high unemployment,so they built the fixed exchange rate system to be highly inflexible.

A) True
B) False

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