The First Element of a Financial Crisis Is

question 156

Multiple Choice

The first element of a financial crisis is

• A)inflation.
• B)a decline in confidence in financial institutions.
• C)a relaxation of rules and regulations that pertain to the financial system.
• D)a large decline in some asset prices.

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Definitions:

Unlearned Behavior

Innate actions or reactions not influenced by conditioning or learning; instinctive behavior.

Homeostatic Mechanism

Biological processes that maintain stability and equilibrium within an organism's internal environment.

Gambling Instinct

An inclination or propensity to take risks in the hope of gaining something, commonly observed in gambling contexts.

Nature

The phenomena of the physical world collectively, including plants, animals, the landscape, and other features and products of the earth.