Initially, Policy Makers Were Not Concerned About the Financial Crisis

question 90

Multiple Choice

Initially, policy makers were not concerned about the financial crisis because:

• A)conventional economic theory was telling them they did not have to worry about such an event occurring.
• B)no other comparable crisis had happened before in history.
• C)fiscal policy would kick in to stabilize the economy.
• D)banks and other financial institutions had convinced policy makers that they would take care of any type of crisis.

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Definitions:

Standard Deviation

A statistical measure that quantifies the variation or dispersion of a set of data points or investment returns.

Arithmetic Return

The simple average of a series of periodic returns of an investment.

Investment

The action of allocating resources, usually money, with the expectation of generating an income or profit.

Population

The total number of individuals within a specific area or of a particular species or group.