Financial Risk Manager Part 1
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Ultimate access to all questions.
What are the consequences of a default by a sovereign nation?
A
The domestic currency will depreciate, which will sharply enhance the export.
B
The equity market will boom in the short run.
C
Political stability, because it has been observed that people still feel confident on their leaders after a default by their country.
D
The banking systems of the defaulting country will become more vulnerable.