Question

The economic crisis in the later half of 1990s most seriously affected Indonesia, Thailand, Malaysia and South Korea.

The cause of the crisis was:

(a) mismanagement of the financial resources and financial sector, in general

(b) the prolonged over-valuation of local currencies vis-vis the western currencies

(c) the downswing and recession in the western economies which earlier provided export market oriented countries

(d) none of these

Answer 1

(a) Mismanagement of the financial resources and financial sector were major cause for the economic crisis in later half of 1990.