The First Three Elements of a Financial Crisis Are Correctly

question 472

Multiple Choice

The first three elements of a financial crisis are correctly represented as taking place in the following order:

• A)large decline in some asset prices → insolvencies at financial institutions → decline in confidence in financial institutions
• B)insolvencies at financial institutions → decline in confidence in financial institutions → large decline in some asset prices
• C)insolvencies at financial institutions → economic downturn → credit crunch
• D)insolvencies at financial institutions → credit crunch → economic downturn

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Definitions:

Predation

The biological interaction where one organism, the predator, feeds on another organism, its prey.

Brazilian Rain Forest

The Amazon Rainforest in Brazil, which is the largest tropical rainforest in the world, known for its biodiversity.

Population Change

The alteration in the number of individuals in a population due to factors like birth rates, death rates, and migration.

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Primates that typically have tails and are smaller than apes, found in both New and Old World regions.