At Some Point During the Financial Crisis of 2008-2009, People

question 101

Multiple Choice

At some point during the financial crisis of 2008-2009, people with uninsured deposits at financial institutions withdrew money from their accounts at those institutions. This phenomenon characterized which element of the financial crisis?

• A)the decline in confidence in financial institutions
• B)the credit crunch
• C)the economic downturn
• D)the decline in asset prices

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Definitions:

End-of-period Spreadsheet

A financial document used to summarize account balances and adjustments at the end of an accounting period, facilitating the preparation of financial statements.

Accounting Records

Documents and books that capture all the financial transactions of a business or individual.

Closing Process

The procedure in accounting that involves the transfer of all income and expense account balances to the retained earnings to prepare the ledger for the next accounting period.

Real Accounts

Accounts that relate to assets, liabilities, and equity, which are not closed at the end of the accounting period and carry their balances into future periods.