A Financial Crisis Is

question 106

Multiple Choice

A financial crisis is

• A)not possible in the modern financial environment.
• B)a major disruption in the financial markets.
• C)a feature of developing economies only.
• D)typically followed by an economic boom.

---

Definitions:

Investment

The method of apportioning capital with the expectation of financial returns or earnings.

Standard Deviation

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

Annual Returns

The percentage change in the value of an investment over a one-year period.

Risk Premium

The extra return expected by an investor for holding a risky asset, compared to a risk-free asset.