1 . Read the following passage carefully and answer the questions given below it.
The great fear in Asia a short while ago was that the region would suffer through the wealth destruction already taking place in the US as a result of the financial crisis. Stock markets tumbled as exports plunged and economic growth deteriorated. Lofty property prices in China and elsewhere looked set to bust as credit tightened and buyers evaporated. But with surprising speed, fear in Asia swung back to greed as the region shows signs of recovery and property and stock prices are soaring in many parts of Asia. Why should this sharp Asian turnaround be greeted with skepticism? Higher asset prices mean households feel wealthier and better able to spend, which could further fuel the region's nascent rebound. But just as easily, Asia could soon find itself saddled with overheated markets similar to the US housing market. In short, the world has not changed, it has just moved places. The incipient bubble is being created by government policy. In response to the global credit crunch of 2008, policy makers in Asia slashed interest rates and flooded financial sectors with cash in frantic attempts to keep loans flowing and economies growing. These steps were logical for central bankers striving to reverse a deepening economic crisis. But there's evidence that there is too much easy money around. It's winding up in stocks and real estate, pushing prices up too far and too fast for the underlying economic fundamentals. Much of the concern is focused on China, where government stimulus efforts have been large and effective.Money in China has been especially easy to find.Aggregate new banklending surged 201% in the firsthalf of 2009 from the same period a year earlier, to nearly $ 1.1 trillion. Exuberance over a quick recovery-which was given a boost by China's surprisingly strong 7.9% GDP growth in the second quarter-has buoyed investor sentiment not just for stocks but also for real estate.
Former US Federal Reserve Chairman Alan Greenspan argued that bubbles could only be recognised in hindsight. But investors-who have been well schooled in the dangers of bubbles over the past decade are increasingly wary that prices have risen too far and that the slightest bit of negative economic news could knock markets for a loop. These fears are compounded by the possibility that Asia's central bankers will begin taking steps to shut off the money. Rumours that Beijing was on the verge of tightening credit led to Shanghai stocks plunging 5%. Yet many economists believe that, 'there is close to a zero possibility that the Chinese government will do anything this year that constitutes tightening.' And without a major shift in thinking, the easy-money conditions will stay in place. Ina globaleconomythathas producedmore dramatic ups anddowns thananyone thoughtpossible overthe pasttwo years,Asia may be heading for another disheartening plunge.
To which of the following has the author attributed the 2008 Asian financial crisis?
(A) Reluctance of Asian governments to taper off the economic stimulus.
(B) Greed of Asian investors causing them to trade stocks of American companies at high prices.
(C) Inflated real estate prices in Asian countries
A.  None
B.  Only A
C.  Only C
D.  A and B
E.  Only B
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2 . Read the following passage carefully and answer the questions given below it.
The great fear in Asia a short while ago was that the region would suffer through the wealth destruction already taking place in the US as a result of the financial crisis. Stock markets tumbled as exports plunged and economic growth deteriorated. Lofty property prices in China and elsewhere looked set to bust as credit tightened and buyers evaporated. But with surprising speed, fear in Asia swung back to greed as the region shows signs of recovery and property and stock prices are soaring in many parts of Asia. Why should this sharp Asian turnaround be greeted with skepticism? Higher asset prices mean households feel wealthier and better able to spend, which could further fuel the region's nascent rebound. But just as easily, Asia could soon find itself saddled with overheated markets similar to the US housing market. In short, the world has not changed, it has just moved places. The incipient bubble is being created by government policy. In response to the global credit crunch of 2008, policy makers in Asia slashed interest rates and flooded financial sectors with cash in frantic attempts to keep loans flowing and economies growing. These steps were logical for central bankers striving to reverse a deepening economic crisis. But there's evidence that there is too much easy money around. It's winding up in stocks and real estate, pushing prices up too far and too fast for the underlying economic fundamentals. Much of the concern is focused on China, where government stimulus efforts have been large and effective.Money in China has been especially easy to find.Aggregate new banklending surged 201% in the firsthalf of 2009 from the same period a year earlier, to nearly $ 1.1 trillion. Exuberance over a quick recovery-which was given a boost by China's surprisingly strong 7.9% GDP growth in the second quarter-has buoyed investor sentiment not just for stocks but also for real estate.
Former US Federal Reserve Chairman Alan Greenspan argued that bubbles could only be recognised in hindsight. But investors-who have been well schooled in the dangers of bubbles over the past decade are increasingly wary that prices have risen too far and that the slightest bit of negative economic news could knock markets for a loop. These fears are compounded by the possibility that Asia's central bankers will begin taking steps to shut off the money. Rumours that Beijing was on the verge of tightening credit led to Shanghai stocks plunging 5%. Yet many economists believe that, 'there is close to a zero possibility that the Chinese government will do anything this year that constitutes tightening.' And without a major shift in thinking, the easy-money conditions will stay in place. Ina globaleconomythathas producedmore dramatic ups anddowns thananyone thoughtpossible overthe pasttwo years,Asia may be heading for another disheartening plunge.
What does the author want to convey through the phrase, 'The world has not changed it has just moved places'?
A.  At present, countries are more dependent on Asian economies than on the US economy
B.  Economies have become interlinked on account of globalization
C.  Asian governments are implementing the same economic reforms as developed countries
D.  All economies are susceptible to recession because of the state of the US economy
E.  None of the above
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3 . Read the following passage carefully and answer the questions given below it.
The great fear in Asia a short while ago was that the region would suffer through the wealth destruction already taking place in the US as a result of the financial crisis. Stock markets tumbled as exports plunged and economic growth deteriorated. Lofty property prices in China and elsewhere looked set to bust as credit tightened and buyers evaporated. But with surprising speed, fear in Asia swung back to greed as the region shows signs of recovery and property and stock prices are soaring in many parts of Asia. Why should this sharp Asian turnaround be greeted with skepticism? Higher asset prices mean households feel wealthier and better able to spend, which could further fuel the region's nascent rebound. But just as easily, Asia could soon find itself saddled with overheated markets similar to the US housing market. In short, the world has not changed, it has just moved places. The incipient bubble is being created by government policy. In response to the global credit crunch of 2008, policy makers in Asia slashed interest rates and flooded financial sectors with cash in frantic attempts to keep loans flowing and economies growing. These steps were logical for central bankers striving to reverse a deepening economic crisis. But there's evidence that there is too much easy money around. It's winding up in stocks and real estate, pushing prices up too far and too fast for the underlying economic fundamentals. Much of the concern is focused on China, where government stimulus efforts have been large and effective.Money in China has been especially easy to find.Aggregate new banklending surged 201% in the firsthalf of 2009 from the same period a year earlier, to nearly $ 1.1 trillion. Exuberance over a quick recovery-which was given a boost by China's surprisingly strong 7.9% GDP growth in the second quarter-has buoyed investor sentiment not just for stocks but also for real estate.
Former US Federal Reserve Chairman Alan Greenspan argued that bubbles could only be recognised in hindsight. But investors-who have been well schooled in the dangers of bubbles over the past decade are increasingly wary that prices have risen too far and that the slightest bit of negative economic news could knock markets for a loop. These fears are compounded by the possibility that Asia's central bankers will begin taking steps to shut off the money. Rumours that Beijing was on the verge of tightening credit led to Shanghai stocks plunging 5%. Yet many economists believe that, 'there is close to a zero possibility that the Chinese government will do anything this year that constitutes tightening.' And without a major shift in thinking, the easy-money conditions will stay in place. Ina globaleconomythathas producedmore dramatic ups anddowns thananyone thoughtpossible overthe pasttwo years,Asia may be heading for another disheartening plunge.
Which of the following can be said about the Chinese government's efforts to revive the economy?
A.  These were largely unsuccessful as only the housing market improved
B.  The government's only concern was to boost investor confidence in stocks
C.  These efforts were ineffectual as the economy recovered owing to the US market stabilising
D.  These were appropriate and accomplished the goal of economic revival
E.  They blindly imitated the economic reforms adopted by the US
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4 . Read the following passage carefully and answer the questions given below it.
The great fear in Asia a short while ago was that the region would suffer through the wealth destruction already taking place in the US as a result of the financial crisis. Stock markets tumbled as exports plunged and economic growth deteriorated. Lofty property prices in China and elsewhere looked set to bust as credit tightened and buyers evaporated. But with surprising speed, fear in Asia swung back to greed as the region shows signs of recovery and property and stock prices are soaring in many parts of Asia. Why should this sharp Asian turnaround be greeted with skepticism? Higher asset prices mean households feel wealthier and better able to spend, which could further fuel the region's nascent rebound. But just as easily, Asia could soon find itself saddled with overheated markets similar to the US housing market. In short, the world has not changed, it has just moved places. The incipient bubble is being created by government policy. In response to the global credit crunch of 2008, policy makers in Asia slashed interest rates and flooded financial sectors with cash in frantic attempts to keep loans flowing and economies growing. These steps were logical for central bankers striving to reverse a deepening economic crisis. But there's evidence that there is too much easy money around. It's winding up in stocks and real estate, pushing prices up too far and too fast for the underlying economic fundamentals. Much of the concern is focused on China, where government stimulus efforts have been large and effective.Money in China has been especially easy to find.Aggregate new banklending surged 201% in the firsthalf of 2009 from the same period a year earlier, to nearly $ 1.1 trillion. Exuberance over a quick recovery-which was given a boost by China's surprisingly strong 7.9% GDP growth in the second quarter-has buoyed investor sentiment not just for stocks but also for real estate.
Former US Federal Reserve Chairman Alan Greenspan argued that bubbles could only be recognised in hindsight. But investors-who have been well schooled in the dangers of bubbles over the past decade are increasingly wary that prices have risen too far and that the slightest bit of negative economic news could knock markets for a loop. These fears are compounded by the possibility that Asia's central bankers will begin taking steps to shut off the money. Rumours that Beijing was on the verge of tightening credit led to Shanghai stocks plunging 5%. Yet many economists believe that, 'there is close to a zero possibility that the Chinese government will do anything this year that constitutes tightening.' And without a major shift in thinking, the easy-money conditions will stay in place. Ina globaleconomythathas producedmore dramatic ups anddowns thananyone thoughtpossible overthe pasttwo years,Asia may be heading for another disheartening plunge.
Why do experts predict that Asian policymakers will not withdraw fiscal stimulus?
(A) The US economy is not likely to recover for a long time.
(B) Stock markets are yet to regain their former levels.
(C) Fear of revolt by greedy citizens.
A.  None
B.  Only C
C.  A and C
D.  Only B
E.  B and C
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5 . Read the following passage carefully and answer the questions given below it.
The great fear in Asia a short while ago was that the region would suffer through the wealth destruction already taking place in the US as a result of the financial crisis. Stock markets tumbled as exports plunged and economic growth deteriorated. Lofty property prices in China and elsewhere looked set to bust as credit tightened and buyers evaporated. But with surprising speed, fear in Asia swung back to greed as the region shows signs of recovery and property and stock prices are soaring in many parts of Asia. Why should this sharp Asian turnaround be greeted with skepticism? Higher asset prices mean households feel wealthier and better able to spend, which could further fuel the region's nascent rebound. But just as easily, Asia could soon find itself saddled with overheated markets similar to the US housing market. In short, the world has not changed, it has just moved places. The incipient bubble is being created by government policy. In response to the global credit crunch of 2008, policy makers in Asia slashed interest rates and flooded financial sectors with cash in frantic attempts to keep loans flowing and economies growing. These steps were logical for central bankers striving to reverse a deepening economic crisis. But there's evidence that there is too much easy money around. It's winding up in stocks and real estate, pushing prices up too far and too fast for the underlying economic fundamentals. Much of the concern is focused on China, where government stimulus efforts have been large and effective.Money in China has been especially easy to find.Aggregate new banklending surged 201% in the firsthalf of 2009 from the same period a year earlier, to nearly $ 1.1 trillion. Exuberance over a quick recovery-which was given a boost by China's surprisingly strong 7.9% GDP growth in the second quarter-has buoyed investor sentiment not just for stocks but also for real estate.
Former US Federal Reserve Chairman Alan Greenspan argued that bubbles could only be recognised in hindsight. But investors-who have been well schooled in the dangers of bubbles over the past decade are increasingly wary that prices have risen too far and that the slightest bit of negative economic news could knock markets for a loop. These fears are compounded by the possibility that Asia's central bankers will begin taking steps to shut off the money. Rumours that Beijing was on the verge of tightening credit led to Shanghai stocks plunging 5%. Yet many economists believe that, 'there is close to a zero possibility that the Chinese government will do anything this year that constitutes tightening.' And without a major shift in thinking, the easy-money conditions will stay in place. Ina globaleconomythathas producedmore dramatic ups anddowns thananyone thoughtpossible overthe pasttwo years,Asia may be heading for another disheartening plunge.
What do the statistics a bout loans given by Chinese banks in 2009 indicate?
A.  There was hardly any demand for loans in 2008
B.  The Chinese government has borrowed funds from the US
C.  China will take longer than the US to recover from the economic crisis
D.  The GDP of China was below expectations
E.  None of the above
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6 . Read the following passage carefully and answer the questions given below it.
The great fear in Asia a short while ago was that the region would suffer through the wealth destruction already taking place in the US as a result of the financial crisis. Stock markets tumbled as exports plunged and economic growth deteriorated. Lofty property prices in China and elsewhere looked set to bust as credit tightened and buyers evaporated. But with surprising speed, fear in Asia swung back to greed as the region shows signs of recovery and property and stock prices are soaring in many parts of Asia. Why should this sharp Asian turnaround be greeted with skepticism? Higher asset prices mean households feel wealthier and better able to spend, which could further fuel the region's nascent rebound. But just as easily, Asia could soon find itself saddled with overheated markets similar to the US housing market. In short, the world has not changed, it has just moved places. The incipient bubble is being created by government policy. In response to the global credit crunch of 2008, policy makers in Asia slashed interest rates and flooded financial sectors with cash in frantic attempts to keep loans flowing and economies growing. These steps were logical for central bankers striving to reverse a deepening economic crisis. But there's evidence that there is too much easy money around. It's winding up in stocks and real estate, pushing prices up too far and too fast for the underlying economic fundamentals. Much of the concern is focused on China, where government stimulus efforts have been large and effective.Money in China has been especially easy to find.Aggregate new banklending surged 201% in the firsthalf of 2009 from the same period a year earlier, to nearly $ 1.1 trillion. Exuberance over a quick recovery-which was given a boost by China's surprisingly strong 7.9% GDP growth in the second quarter-has buoyed investor sentiment not just for stocks but also for real estate.
Former US Federal Reserve Chairman Alan Greenspan argued that bubbles could only be recognised in hindsight. But investors-who have been well schooled in the dangers of bubbles over the past decade are increasingly wary that prices have risen too far and that the slightest bit of negative economic news could knock markets for a loop. These fears are compounded by the possibility that Asia's central bankers will begin taking steps to shut off the money. Rumours that Beijing was on the verge of tightening credit led to Shanghai stocks plunging 5%. Yet many economists believe that, 'there is close to a zero possibility that the Chinese government will do anything this year that constitutes tightening.' And without a major shift in thinking, the easy-money conditions will stay in place. Ina globaleconomythathas producedmore dramatic ups anddowns thananyone thoughtpossible overthe pasttwo years,Asia may be heading for another disheartening plunge.
Why has investor confidence in the Chinese stock market been restored?
(A) Existing property prices which are stable and affordable.
(B) The government has decided to tighten credit.
(C) Healthy growth of the economy indicated by GDP figures.
A.  Only C
B.  A and B
C.  All A, B and C
D.  Only B
E.  None of these
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7 . Read the following passage carefully and answer the questions given below it.
The great fear in Asia a short while ago was that the region would suffer through the wealth destruction already taking place in the US as a result of the financial crisis. Stock markets tumbled as exports plunged and economic growth deteriorated. Lofty property prices in China and elsewhere looked set to bust as credit tightened and buyers evaporated. But with surprising speed, fear in Asia swung back to greed as the region shows signs of recovery and property and stock prices are soaring in many parts of Asia. Why should this sharp Asian turnaround be greeted with skepticism? Higher asset prices mean households feel wealthier and better able to spend, which could further fuel the region's nascent rebound. But just as easily, Asia could soon find itself saddled with overheated markets similar to the US housing market. In short, the world has not changed, it has just moved places. The incipient bubble is being created by government policy. In response to the global credit crunch of 2008, policy makers in Asia slashed interest rates and flooded financial sectors with cash in frantic attempts to keep loans flowing and economies growing. These steps were logical for central bankers striving to reverse a deepening economic crisis. But there's evidence that there is too much easy money around. It's winding up in stocks and real estate, pushing prices up too far and too fast for the underlying economic fundamentals. Much of the concern is focused on China, where government stimulus efforts have been large and effective.Money in China has been especially easy to find.Aggregate new banklending surged 201% in the firsthalf of 2009 from the same period a year earlier, to nearly $ 1.1 trillion. Exuberance over a quick recovery-which was given a boost by China's surprisingly strong 7.9% GDP growth in the second quarter-has buoyed investor sentiment not just for stocks but also for real estate.
Former US Federal Reserve Chairman Alan Greenspan argued that bubbles could only be recognised in hindsight. But investors-who have been well schooled in the dangers of bubbles over the past decade are increasingly wary that prices have risen too far and that the slightest bit of negative economic news could knock markets for a loop. These fears are compounded by the possibility that Asia's central bankers will begin taking steps to shut off the money. Rumours that Beijing was on the verge of tightening credit led to Shanghai stocks plunging 5%. Yet many economists believe that, 'there is close to a zero possibility that the Chinese government will do anything this year that constitutes tightening.' And without a major shift in thinking, the easy-money conditions will stay in place. Ina globaleconomythathas producedmore dramatic ups anddowns thananyone thoughtpossible overthe pasttwo years,Asia may be heading for another disheartening plunge.
What is the author's main objective in writing this passage?
A.  Illustrating that Asian economies are financially more sound than those of developed countries
B.  Disputing financial theories about how recessions can be predicted and avoided
C.  Warning Asian countries about the dangers of favouring fast growth and profits over sound economic principles
D.  Extolling China's incredible growth and urging other countries to emulate it
E.  Advising governments about the changes in policy to strengthen economic fundamentals
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8 . Read the following passage carefully and answer the questions given below it.
The great fear in Asia a short while ago was that the region would suffer through the wealth destruction already taking place in the US as a result of the financial crisis. Stock markets tumbled as exports plunged and economic growth deteriorated. Lofty property prices in China and elsewhere looked set to bust as credit tightened and buyers evaporated. But with surprising speed, fear in Asia swung back to greed as the region shows signs of recovery and property and stock prices are soaring in many parts of Asia. Why should this sharp Asian turnaround be greeted with skepticism? Higher asset prices mean households feel wealthier and better able to spend, which could further fuel the region's nascent rebound. But just as easily, Asia could soon find itself saddled with overheated markets similar to the US housing market. In short, the world has not changed, it has just moved places. The incipient bubble is being created by government policy. In response to the global credit crunch of 2008, policy makers in Asia slashed interest rates and flooded financial sectors with cash in frantic attempts to keep loans flowing and economies growing. These steps were logical for central bankers striving to reverse a deepening economic crisis. But there's evidence that there is too much easy money around. It's winding up in stocks and real estate, pushing prices up too far and too fast for the underlying economic fundamentals. Much of the concern is focused on China, where government stimulus efforts have been large and effective.Money in China has been especially easy to find.Aggregate new banklending surged 201% in the firsthalf of 2009 from the same period a year earlier, to nearly $ 1.1 trillion. Exuberance over a quick recovery-which was given a boost by China's surprisingly strong 7.9% GDP growth in the second quarter-has buoyed investor sentiment not just for stocks but also for real estate.
Former US Federal Reserve Chairman Alan Greenspan argued that bubbles could only be recognised in hindsight. But investors-who have been well schooled in the dangers of bubbles over the past decade are increasingly wary that prices have risen too far and that the slightest bit of negative economic news could knock markets for a loop. These fears are compounded by the possibility that Asia's central bankers will begin taking steps to shut off the money. Rumours that Beijing was on the verge of tightening credit led to Shanghai stocks plunging 5%. Yet many economists believe that, 'there is close to a zero possibility that the Chinese government will do anything this year that constitutes tightening.' And without a major shift in thinking, the easy-money conditions will stay in place. Ina globaleconomythathas producedmore dramatic ups anddowns thananyone thoughtpossible overthe pasttwo years,Asia may be heading for another disheartening plunge.
Why does the author doubt the current resurgence of Asian economies?
A.  Their economies are too heavily reliant on the American economy which is yet to recover
B.  Central banks have slashed interest rates too abruptly which is likely to cause stock markets to crash
C.  With their prevailing economic conditions they are at risk for a financial crisis
D.  Their GDP has not grown significantly during the last financial year
E.  None of the above
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9 . Read the following passage carefully and answer the questions given below it.
The great fear in Asia a short while ago was that the region would suffer through the wealth destruction already taking place in the US as a result of the financial crisis. Stock markets tumbled as exports plunged and economic growth deteriorated. Lofty property prices in China and elsewhere looked set to bust as credit tightened and buyers evaporated. But with surprising speed, fear in Asia swung back to greed as the region shows signs of recovery and property and stock prices are soaring in many parts of Asia. Why should this sharp Asian turnaround be greeted with skepticism? Higher asset prices mean households feel wealthier and better able to spend, which could further fuel the region's nascent rebound. But just as easily, Asia could soon find itself saddled with overheated markets similar to the US housing market. In short, the world has not changed, it has just moved places. The incipient bubble is being created by government policy. In response to the global credit crunch of 2008, policy makers in Asia slashed interest rates and flooded financial sectors with cash in frantic attempts to keep loans flowing and economies growing. These steps were logical for central bankers striving to reverse a deepening economic crisis. But there's evidence that there is too much easy money around. It's winding up in stocks and real estate, pushing prices up too far and too fast for the underlying economic fundamentals. Much of the concern is focused on China, where government stimulus efforts have been large and effective.Money in China has been especially easy to find.Aggregate new banklending surged 201% in the firsthalf of 2009 from the same period a year earlier, to nearly $ 1.1 trillion. Exuberance over a quick recovery-which was given a boost by China's surprisingly strong 7.9% GDP growth in the second quarter-has buoyed investor sentiment not just for stocks but also for real estate.
Former US Federal Reserve Chairman Alan Greenspan argued that bubbles could only be recognised in hindsight. But investors-who have been well schooled in the dangers of bubbles over the past decade are increasingly wary that prices have risen too far and that the slightest bit of negative economic news could knock markets for a loop. These fears are compounded by the possibility that Asia's central bankers will begin taking steps to shut off the money. Rumours that Beijing was on the verge of tightening credit led to Shanghai stocks plunging 5%. Yet many economists believe that, 'there is close to a zero possibility that the Chinese government will do anything this year that constitutes tightening.' And without a major shift in thinking, the easy-money conditions will stay in place. Ina globaleconomythathas producedmore dramatic ups anddowns thananyone thoughtpossible overthe pasttwo years,Asia may be heading for another disheartening plunge.
Which of the following can be inferred from the passage?
(A) All Asian economies are recovering at the same pace.
(B) Experts are apprehensive about the state of Asian economies despite their recovery.
(C) Developed countries should implement the same economies reforms as Asian ones.
A.  Only A
B.  B and C
C.  A and B
D.  Only B
E.  None of these
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10 . Read the following passage carefully and answer the questions given below it.
The great fear in Asia a short while ago was that the region would suffer through the wealth destruction already taking place in the US as a result of the financial crisis. Stock markets tumbled as exports plunged and economic growth deteriorated. Lofty property prices in China and elsewhere looked set to bust as credit tightened and buyers evaporated. But with surprising speed, fear in Asia swung back to greed as the region shows signs of recovery and property and stock prices are soaring in many parts of Asia. Why should this sharp Asian turnaround be greeted with skepticism? Higher asset prices mean households feel wealthier and better able to spend, which could further fuel the region's nascent rebound. But just as easily, Asia could soon find itself saddled with overheated markets similar to the US housing market. In short, the world has not changed, it has just moved places. The incipient bubble is being created by government policy. In response to the global credit crunch of 2008, policy makers in Asia slashed interest rates and flooded financial sectors with cash in frantic attempts to keep loans flowing and economies growing. These steps were logical for central bankers striving to reverse a deepening economic crisis. But there's evidence that there is too much easy money around. It's winding up in stocks and real estate, pushing prices up too far and too fast for the underlying economic fundamentals. Much of the concern is focused on China, where government stimulus efforts have been large and effective.Money in China has been especially easy to find.Aggregate new banklending surged 201% in the firsthalf of 2009 from the same period a year earlier, to nearly $ 1.1 trillion. Exuberance over a quick recovery-which was given a boost by China's surprisingly strong 7.9% GDP growth in the second quarter-has buoyed investor sentiment not just for stocks but also for real estate.
Former US Federal Reserve Chairman Alan Greenspan argued that bubbles could only be recognised in hindsight. But investors-who have been well schooled in the dangers of bubbles over the past decade are increasingly wary that prices have risen too far and that the slightest bit of negative economic news could knock markets for a loop. These fears are compounded by the possibility that Asia's central bankers will begin taking steps to shut off the money. Rumours that Beijing was on the verge of tightening credit led to Shanghai stocks plunging 5%. Yet many economists believe that, 'there is close to a zero possibility that the Chinese government will do anything this year that constitutes tightening.' And without a major shift in thinking, the easy-money conditions will stay in place. Ina globaleconomythathas producedmore dramatic ups anddowns thananyone thoughtpossible overthe pasttwo years,Asia may be heading for another disheartening plunge.
According to the passage, which of the following factor(s) has/have had a negative impact on the Asian stock markets?
(A) Abrupt drop in exports by Asian countries
(B) Extravagant disbursement of housing loans in 2009
(C) Raising of interest rates by the Central Bank
A.  None
B.  A and B
C.  Only A
D.  A and C
E.  All A, B and C
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