Question 882 Asian financial crisis, foreign exchange rate, original sin, no explanation
In the Asian currency crisis in 1997, the Asian businesses most vulnerable to bankruptcy were those that:
(a) Borrowed in their own domestic currency, for example a Thai business borrowing in Thai Baht.
(b) Borrowed in US Dollars.
(c) Lent in their own domestic currency, for example a Thai business lending in Thai Baht.
(d) Lent in US Dollars.
Copyright © 2014 Keith Woodward