The Process in Which a Cycle of Falling Asset Prices

question 12

Multiple Choice

The process in which a cycle of falling asset prices and falling prices of goods and services can increase the severity of an economic downturn is called:

• A)financial crisis
• B)bank run
• C)sovereign debt crisis
• D)debt-deflation process

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Definitions:

Cashier's Check

A check issued by a bank, drawn on its own funds and signed by a cashier, guaranteeing payment.

Liable

The condition of being legally accountable for specific actions or responsibilities, particularly in relation to debts or legal duties.

Oral Stop-Payment Order

A verbal instruction to a financial institution to cancel the payment process of a check or transaction.

Good

An item or product that is manufactured or produced for sale, often tangible, and exchanged in the marketplace.