Conditions That Likely Contributed to a Credit Crunch During the Global

question 3

Multiple Choice

Conditions that likely contributed to a credit crunch during the global financial crisis include

• A)capital shortfalls caused in part by falling real estate prices.
• B)regulated hikes in bank capital requirements.
• C)falling interest rates that raised interest rate risk,causing banks to choose to hold more capital.
• D)increases in reserve requirements.

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