Which of the Following Is a Common Underlying Cause of Financial

question 60

Multiple Choice

Which of the following is a common underlying cause of financial crises?

• A) a narrowing current account deficit
• B) excessive expansion of domestic borrowing
• C) low relative price inflation rates
• D) asset price deflation

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Definitions:

Management Rights

The rights retained by employers, allowing them to operate and manage their business without interference from the workforce.

Co-ownership

The state or condition where two or more parties hold property jointly, sharing rights and responsibilities.

Instrumentality

A term referring to a means or agency through which a function of another entity is accomplished.

Business Transaction

An interaction between two or more parties that involves the exchange of goods, services, or information for the purpose of conducting business.