Conditions That Likely Contributed to a Credit Crunch in 2008

question 57

Multiple Choice

Conditions that likely contributed to a credit crunch in 2008 include:

• A)capital shortfalls caused in part by falling real estate prices.
• B)regulated hikes in bank capital requirements.
• C)falling interest rates that raised interest rate risk,causing banks to choose to hold more capital.
• D)increases in reserve requirements.

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Definitions:

Differences

Distinctions between entities in various aspects such as physical characteristics, preferences, or behaviors.

Individual Differences

Variabilities among individuals in behavior, biology, and psychology, encompassing aspects like personality, intelligence, and physical attributes.

Behavior Patterns

Recurrent ways of acting or responding that are characteristic to an individual or group.

Interpersonal Processes

Involves the ways in which individuals interact, communicate, and relate to each other within various social contexts.