Most Financial Crises in the United States Have Begun with

question 24

Multiple Choice

Most financial crises in the United States have begun with

• A) a steep stock market decline.
• B) an increase in uncertainty resulting from the failure of a major firm.
• C) a steep decline in interest rates.
• D) all of the above.
• E) only A and B of the above.

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Definitions:

Securities And Exchange Commission

A U.S. government agency responsible for regulating the securities industry, enforcing federal securities laws, and overseeing the stock and options exchanges.

Due Diligence

A comprehensive appraisal or investigation of a business or person prior to signing a contract, or an act with a certain standard of care.

Registration Statement

A document filed with the Securities and Exchange Commission (SEC) that contains details about an investment offering for sale to the public.

Posteffective Period

The time frame after a registration statement has been declared effective by the SEC, during which securities may be sold.