The GFC

question 79

Multiple Choice

The GFC:

• A)prompted a 'flight to quality' that pushed up the interest rate on government securities
• B)caused a sharp contraction in lending that prevented many firms from being able to refinance their maturing debt
• C)prompted the US government to 'bail-out' financial institutions, including Lehman Brothers
• D)reinforced the view that markets are 'self-correcting'
• E)lead to widespread failures of financial institutions in Australia.

---

Definitions:

Dispersion

Measures the spread of a set of data points around their mean or median value.

Standard Deviation

A statistical measure that represents the dispersion or spread of a dataset relative to its mean, indicating how spread out the data points are.

Variance

A measure of the dispersion of a set of data points around their mean; conceptually, it's the average of the squared differences from the Mean.

Cash Flows

The total amount of money being transferred into and out of a business, determining its operating, investing, and financing activities' liquidity.