All of the Following Contributed to Recent Financial Crises EXCEPT

question 51

Multiple Choice

All of the following contributed to recent financial crises EXCEPT

• A) Focusing on earnings instead of cash flow.
• B) Focusing on the short run.
• C) Relying on the efficiency of financial markets.
• D) Excessive risk taking due to underestimation of risk.

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Definitions:

Functionalism

A theoretical perspective in sociology and anthropology that interprets society as a structure with interrelated parts designed to meet the biological and social needs of individuals that make up that society.

Evolutionary Theories

A set of principles that explains how biological organisms have changed over time due to processes such as natural selection and genetic drift.

Charles Darwin

A naturalist known for his contributions to the science of evolution and natural selection.

Structuralism

An early school of psychology that used introspection to explore the elemental structure of the human mind, emphasizing the analysis of immediate experiences into basic elements.